VN-Index rebounds, hitting one-month high

VN-Index rebounds, hitting one-month high

Another notable positive development was the return of foreign investments, with a net buying figure of nearly VNĐ623 billion on the HoSE.

A customer performs a transaction at a VPBank. The lender's shares soared over 2.8 per cent on Wednesday, supporting the market's recovery. — VNA/VNS Photo

The Vietnamese stock market experienced a significant gain on Wednesday, with the VN-Index on the Hochiminh Stock Exchange (HoSE) rising by 20 points, or 1.2 per cent, to close at 1,680.36 points. 

This was its highest close in one month. 

The bullish performance occurred even as market liquidity remained low, reflecting a cautious approach among investors. Across the board, all industrial sectors recorded positive movements.

On the southern bourse, by the end of the trading session, a total of 243 stocks advanced, while 79 declined. 

The HNX-Index on the Hanoi Stock Exchange (HNX) also rebounded, climbing 4.61 points, or 1.79 per cent, to reach 261.91 points. The breadth on the exchange was also in the positive zone, with 99 stocks increasing and 37 decreasing.

Despite the encouraging market trends, overall liquidity dropped, with total trading value on the HoSE nearing VNĐ24.9 trillion (US$942.3 million), a decline of 8.4 per cent from the previous session. 

The VN30-Index followed suit, adding 15.93 points, or 0.73 per cent, to reach 1,923.55 points. Twenty-four of the 30 blue-chip stocks closed in the green, while only five went down and one stayed unchanged. 

Noteworthy performers were SSI Securities (SSI), VPBank (VPB), Mobile World Investment Corporation (MWG), Masan Group (MSN), Vietinbank (CTG), MBBank (MBB) and Sahabank (SHB), many of which recorded gains of 2–3 per cent alongside high trading volumes, indicating that substantial capital was favouring large-cap stocks.

Meanwhile, the real estate and construction sectors expanded their gains, though not as markedly as the banking and financial sectors. Stocks like Becamex (BCM), Vinhomes (VHM), Phat Dat Real Estate Development Corporation (PDR), Novaland (NVL) and DIC Group (DIG) saw slight recoveries but faced profit-taking pressures at higher price levels during trading.

Another notable positive development was the return of foreign investments, with a net buying figure of nearly VNĐ623 billion on the HoSE, snapping a previous streak of net sell-offs. 

According to analysts at MB Securities, the VN-Index's ability to close above the 1,670-point mark in the final two sessions of the week significantly enhances the likelihood of a swift rise past the 1,700-point threshold. 

This positive outlook is supported by the current market momentum, which indicates a potential rally.

Investors are advised to consider increasing their equity allocations to 70 per cent in their portfolios. 

The analysis highlights sectors that have recently experienced substantial declines, including securities, banking and real estate, which are expected to rebound quickly as market sentiment improves. 

Bizhub