Market kicks off new week on positive note as VN-Index nears 1,600 points

Market kicks off new week on positive note as VN-Index nears 1,600 points

At the end of Monday’s trading, the VN-Index on the Ho Chi Minh Stock Exchange rose 11.91 points, or 0.75 per cent, to close at 1,596.86 points.

Pork processing line at Masan Group’s MeatDeli factory in Tây Ninh Province. The food processing group’s MSN shares hit the ceiling and led the market on Monday. — Photo thesaigontimes.vn

Strong cash inflows continued to pour into the market on Monday morning, reflecting investors’ optimism and pushing the VN-Index up more than 16 points to successfully conquer the 1,600-point mark.

However, both active buying and selling showed signs of slowing towards the end of the morning session, resulting in lower overall liquidity compared with the same time in the previous session.

At the end of Monday’s trading, the VN-Index on the Ho Chi Minh Stock Exchange rose 11.91 points, or 0.75 per cent, to close at 1,596.86 points.

Market breadth leaned heavily towards gainers, with 228 stocks advancing against only 97 declining. Liquidity dropped 7.9 per cent from the previous session to VNĐ45.2 trillion (US$1.7 billion).

The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity, also posted an increase of 12.82 points, or 0.74 per cent, to 1,741.9 points, with 21 gainers and nine losers.

Leading the market were manufacturing and banking stocks. Masan Group Corporation (MSN) hit the ceiling with a gain of 6.91 per cent, contributing nearly two points to the VN-Index. It was followed by Vietnam Rubber Group – Joint Stock Company (GVR), up 6.54 per cent, and Gelex Electricity Joint Stock Company (GEE), up 6.74 per cent.

In the banking sector, Military Commercial Joint Stock Bank (MBB) led the gains with a rise of 4.09 per cent, followed by Vietcombank (VCB) and Bank for Investment and Development of Việt Nam (BID), which advanced 0.97 per cent and 1.26 per cent, respectively. Together, the group contributed nearly four points to the VN-Index.

On the other side, the Vingroup family of stocks put pressure on the market, topping the list of decliners. Vingroup Joint Stock Company (VIC), Vinhomes JSC (VHM) and Vincom Retail Joint Stock Company (VRE) fell 1.28 per cent, 1.37 per cent and 2.17 per cent, respectively, dragging the VN-Index down by nearly three points.

Analysts from Saigon – Hanoi Securities JSC (SHS) said: “Although it failed to hold the 1,600-point mark, the VN-Index has climbed to a new record high. Market sentiment remains positive, with total trading value across all three exchanges exceeding VNĐ51 trillion.

“Market breadth across the three bourses favoured the ‘green side’ with more than 500 gainers, compared with only 297 losers. Gains in pillar sectors, alongside a divergence between groups and rising caution towards the end of the session, suggest that 1,600 points will be a key resistance level in the coming sessions.”

According to the analysts, the market is entering a strong divergence phase, partly due to tight margin lending limits. Stocks that have already posted strong gains are facing depleted lending room, making them less attractive to new cash inflows and leading to weaker price performance.

On the northern exchange, the HNX-Index gained four points, or 1.47 per cent, to 276.46 points. Trading value on the Hà Nội Stock Exchange reached VNĐ1.1 trillion, with nearly 80 million shares changing hands. 

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