Investors expected to stay upbeat this week

Investors expected to stay upbeat this week

Market dynamics have shifted, with information-driven volatility manifesting through fluctuating gains across sectors.

An investor observes the market's movements at a trading office of a securities firm. — VNA/VNS Photo

After four weeks of declines and thin trading, the Vietnamese stock market staged a solid rebound last week, signalling growing investor optimism for a sustained upward trend.

On the Hochiminh Stock Exchange (HoSE), the VN-Index closed at 1,635.46 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) ended at 267.61 points. For the week, the VN-Index rose 2.27 per cent and the HNX-Index gained 2.88 per cent.

Market breadth showed positive signs as most sectors recorded price increases following the recent correction period. Notable gains were observed in insurance, oil and gas, agriculture, retail, securities, chemicals, construction, and industrial sectors, with several stocks performing well amid improved liquidity. 

Despite the recovery, overall market liquidity fell, with trading volumes on the HoSE down 21 per cent from the previous week, reflecting significant sector differentiation. Money has begun flowing into fundamentally strong stocks with positive earnings reports.

Foreign investors, however, remained net sellers, offloading more than VNĐ2.28 trillion (US$86.5 million) on the HoSE, marking sixteen consecutive weeks of net selling.

Investor expectations for further recovery are rising, as many endured losses of 20-30 per cent in their portfolios during the downturn. Market dynamics shifted, with information-driven volatility creating fluctuating gains across sectors. 

Encouraging news about a GDP growth target of over 10 per cent for 2026, as well as positive evaluations from FTSE Russell and Vanguard on a potential stock market upgrade, have also bolstered sentiment.

According to Đinh Việt Bách, an analyst at Pinetree Securities, last week’s momentum was driven by the announcement of the GDP growth target and signals from international investment firms regarding Vietnam’s market upgrade. 

Distinct capital rotation was observed, with funds shifting from large-cap stocks to previously stagnant small- and mid-cap sectors, including oil, gas, and chemicals. Conversely, larger-cap groups such as VinGroup, banks and securities saw less active trading. 

While foreign investors continue to sell, market sentiment has stabilised, with the VN-Index recording four consecutive recovery sessions. Short-term expectations suggest a potential breakout, confirming a new upward trajectory, with mid-cap stocks likely to lead the way. 

Saigon-Hanoi Securities (SHS) noted that the short-term perspective after the recent decline suggests an ongoing recovery and accumulation phase. Attention should be paid to liquidity levels, as the market may still fluctuate around the 1,610 support level.

With hopes of attracting new capital, particularly following FTSE Russell’s recent disclosure of compliant stocks, the VN-Index could continue its upward movement. 

For stock strategies, Vietnam Construction Securities advises investors to take small positions during corrections and gradually increase stakes in mid-cap sectors that have accelerated in the past week, notably in oil, chemicals, retail and construction. 

Bizhub