Stocks rebound after historic sell-off, led by banking and materials

Stocks rebound after historic sell-off, led by banking and materials

Vietnamese stocks rebounded on Monday as strong gains in banking and materials shares helped lift the VN-Index nearly 24 points, recovering part of the losses after last week’s historic market sell-off.

Sector performance was mixed toward the end of the day, with gains focusing on banking, materials and food and beverage stocks while energy still led the losing groups. — VNA/VNS Photo

Việt Nam’s stock market rebounded on Tuesday, snapping a three-session losing streak after Monday’s historic sell-off, with strong gains in banking, materials and consumer stocks lifting the benchmark indices.

The VN-Index on the Hochiminh Stock Exchange (HoSE) rose nearly 24 points, or 1.45 per cent, to close at 1,676.73 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) gained 2 per cent to end at 240.07 points.

The market maintained gains throughout most of the session, despite briefly slipping toward the reference level earlier in the day. Trading activity picked up toward the close as investor demand strengthened.

Nearly 1.7 billion shares worth nearly VNĐ45 trillion (US$1.7 billion) were traded on the two main markets, representing increases of 10.5 per cent in volume and 2 per cent in value compared to Monday’s levels.

Sector performance was mixed toward the end of the day, with gains focusing on banking, materials and food and beverage stocks while energy still led the losing groups.

On the HoSE, seven out of the 10 stocks lifting the VN-Index most were banks, notably Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), Military Bank (MBB), Sacombank (STB), Asia Commercial Bank (ACB) and Techcombank (TCB), with growth of between 3 per cent and 7 per cent.

As for materials stocks, Hoa Phat Group (HPG) and Duc Giang Chemicals (DGC) rose to the ceiling price. Fertiliser producers PetroVietnam Fertiliser and Chemicals (DPM) and PetroVietnam Ca Mau Fertiliser (DCM) posted solid gains of around 4–5 per cent.

In the consumer staples sector, Vinamilk (VNM) stood out as one of the main drivers supporting the market’s recovery.

Sector performance was mixed toward the end of the day, with gains focusing on banking, materials and food and beverage stocks while energy still led the losing groups. — VNA/VNS Photo

Despite the overall positive market tone, oil and gas stocks moved in the opposite direction. Most stocks in the sector declined sharply, with Binh Son Refinery (BSR), Petrolimex (PLX) and PV Gas (GAS) even hitting the floor price during the session.

The rebound followed the historic March 9 trading session that marked the largest single-day drop ever in Việt Nam’s stock market. 

According to Nguyễn Trọng Đình Tâm, director of individual client advisory at Thien Viet Securities, the sharp market decline was driven largely by concerns over energy security and rising inflation amid escalating military tensions in the Middle East.

He said the VN-Index might only form a solid bottom once the US and Iran reach some form of agreement – or at least when the market begins to expect negotiations. In the near term, he expected tensions in the region could peak within one to two weeks, potentially paving the way for a rapid V-shaped recovery.

Meanwhile, Phạm Huyền Trang, investment product director at SSI Asset Management, said the risk of widespread margin calls remained limited as overall margin levels in the market were still within a safe range.

She described the current shock as cyclical rather than a long-term macroeconomic risk, noting that Việt Nam’s economic fundamentals remain solid with steady growth, improving exports and stable FDI inflows.

Trang added that while geopolitical tensions might cause short-term volatility, the market’s long-term outlook remained positive as valuations had returned to historically attractive levels. 

Bizhub