Strong liquidity lifts VN-Index back to 1,500 points

Strong liquidity lifts VN-Index back to 1,500 points

The market received support from both domestic and foreign investors.

Customers at a transaction office of VPBank. Shares of the lender posted the biggest daily gain on Wednesday, contributing the most to the market's rallies. — Photo vpbank.com.vn

Benchmark indices rebounded on Wednesday, with the VN-Index reclaiming the psychological level of 1,500 points, driven by strong capital inflows into key sectors such as banking, securities, and real estate.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index closed the day at 1,507.63 points, up 14.22 points, or 0.95 per cent. 

The index experienced a tug-of-war between buyers and sellers throughout the session. However, from mid-afternoon, it gained upward momentum as substantial capital flowed into large-cap stocks.

Wednesday's close gave the market a surprise, as most securities firms expected further adjustments, with some speculating a dip to around 1,470 points after the previous day's 64-point loss. 

The market's breadth was positive as the number of gainers surpassed that of decliners by 223 to 111. Liquidity dropped to nearly VNĐ42 trillion (US$1.6 billion) from VNĐ72 trillion in Tuesday's session.

The VN30-Index also inched higher by 9.5 points, or 0.59 per cent, to 1,630.78 points. Twenty stocks in the VN30 basket ticked up, while nine declined, and one stayed flat. 

On the Hanoi Stock Exchange (HNX), the HNX-Index rose by 6.15 points, or 2.41 per cent, to finish at 261.51 points. Investors poured more than VNĐ3.8 trillion into the northern market. 

The banking sector was the primary contributor to the gains, with several major stocks rising over 4 per cent. VPBank (VPB), which had initially dropped during the morning session, rebounded sharply in the afternoon to hit its ceiling price of VNĐ25,250. Sahabank (SHB) also hit ceiling prices.

Conversely, some banking stocks, such as Seabank (SSB) faced corrective pressure, dropping 3.3 per cent.

In the securities sector, VIX Securities JSC (VIX) hit its ceiling price of 25,600 VND, while Saigon - Hanoi Securities JSC (SHS), and Asia - Pacific Securities (APS), traded on HNX, also logged the maximum daily gain of 7 per cent. 

Other major stocks like SSI Securities Corporation (SSI), Ho Chi Minh Securities Corporation (HCM), and VNDirect Securities Company (VND) rose more than 1.4 per cent from their reference prices.

Foreign investors also emerged as a bright spot in the market's recovery, returning to a net buy trend after four consecutive days of net selling. Particularly, they net bought VNĐ1.52 trillion on HoSE and nearly VNĐ109.5 billion on HNX.

Bizhub