Market rises on large caps and foreign buying

Market rises on large caps and foreign buying

Vietnamese stocks rose nearly one per cent on Monday as foreign buying returned to large-cap shares, pushing the VN-Index to 1,896.59 points.

The Vietnam Exposition Centre developed by Vingroup in Hà Nội's Đông Anh Commune. Vingoup led the top 10 most influencing shares on the VN-Index on Monday, rising 1.3 per cent. — VNA/VNS Photo Quốc Khánh

Vietnamese stocks rose on Monday, driven by gains in large-cap shares across property, energy, banking and construction materials sectors, with foreign investors returning as net buyers on the southern bourse.

The VN-Index on the Hochiminh Stock Exchange (HoSE) climbed more than 17 points, or 0.93 per cent, to close at 1,896.59 points. The HNX-Index on the Hanoi Stock Exchange (HNX) advanced 1.06 per cent to 254.95 points.

Trading volume increased from the previous session, with nearly 1.2 billion shares worth VNĐ37.6 trillion (US$1.45 billion) changing hands on the southern bourse, up over 5 per cent from Friday. On the Hà Nội exchange, 94.5 million shares valued at VNĐ2.3 trillion were traded, up nearly 10 per cent over the previous session.

Market breadth was relatively balanced, with 344 gainers and 355 losers across both exchanges.

In the main bourse in HCM City, the VN30 basket of large caps showed stronger momentum, with 18 stocks rising, nine declining and three unchanged. Among the top 10 market leaders were Vingroup, PV Gas, Vietnam Rubber Group, VPBank, BIDV, Petrolimex, Vinhomes, Military Bank, Techcombank and Binh Son Refinery.

Across sectors, 16 out of 23 groups tracked by vietstock.vn reported growth. Media and telecommunications led sectoral gains, surging 5.03 per cent on average, focusing on strength in VGI Corp, Cable & Wireless, FPT Online and YEG Corp.

Most influencing sectors such as banking, financial institutions, property, energy and construction materials saw average growth of between 1 and 3.5 per cent.

Foreign investors turned net buyers on the HOSE, purchasing a net VNĐ502 billion, concentrated in PV Gas (GAS), Petrolimex (PLX) and Vietinbank (CTG), with net buying of more than VNĐ100 billion each.

On the HNX, foreigners were net sellers at VNĐ7.7 billion, focused on securities and insurance companies such as MBS, SHS and PVI.

According to ACB Securities, the rally reflects a broadening of cash flows away from a handful of heavyweight stocks into sectors with more attractive valuations, particularly banks, retail and infrastructure.

Banking shares have drawn strong interest as credit growth is expected to reach 16–17 per cent, while sector valuations remain below 10 times earnings, well under regional peers.

Meanwhile, analysts at Yunta Vietnam Securities said the VN-Index could test resistance at 1,918 points, with potential divergence emerging between large-cap and smaller stocks.

“While large-cap shares show signs of entering a short-term accumulation phase, mid-cap and small-cap stocks appear to be establishing clearer upward trends,” they wrote in a note.

The market’s short-term outlook remains positive, supporting high equity exposure, while the medium-term view is neutral with easing risks as mid- and small-cap stocks stabilise. 

Bizhub