VN-Index rises for second day in a row

VN-Index rises for second day in a row

Breadth of the southern market was positive, as 172 stocks advanced and 128 stocks declined.

A view of Vinpearl Nha Trang. Shares of Vinpearl climbed 1.94 per cent on Wednesday, supporting the market's uptrend. — Photo courtesy of Vinpearl

The market sent another optimistic signal on July 8, extending the rebound after early-week recovery attempts raised doubts among investors. 

The VN-Index, representing the Hochiminh Stock Exchange (HoSE), rose an additional 5.45 points, or to 1,853.7 points, marking the second consecutive up-session and helping the benchmark stay above the key 1,850-point resistance level as selling pressure appeared to ease.

Breadth of the market was positive, as 172 stocks advanced and 128 stocks declined. Liquidity also improved, reaching nearly VNĐ17.2 trillion (US$654 million).

The VN30-Index, tracking the 30 biggest stocks on HoSE, also increased 2.53 points to 1,998.44 points. In the VN30 basket, performance remained uneven. 

Notable gainers included Petrovietnam Refining and Petrochemical Corporation (BSR), up 3.51 per cent, Vinpearl (VPL), up 1.94 per cent, Mobile World Investment Corporation (MWG), which jumped 1.68 per cent, PV Gas (GAS) increased 1.36 per cent and Petrolimex (PLX), up 1 per cent.

In the opposite direction, some major names limited upward momentum. FPT Corporation (FPT) fell 1.5 per cent, LPBank (LPB) dropped 1.3 per cent and Vincom Retail (VRE) declined 1.1 per cent. 

Meanwhile, large caps Vingroup (VIC) and Vinhomes (VHM) reportedly traded around the reference with choppy movement, leaving the pillar group unable to create a stronger push.

The HNX-Index on the Hanoi Stock Exchange (HNX) also recovered, finishing higher at 30.39 points, up 6.65 points. 

Foreign investors returned to net selling on the HoSE, with net outflows of nearly VNĐ553 billion.

Looking ahead, Yuanta Vietnam Securities said that VN-Index's short-term uptrend remains intact, with a target zone of 1,885–1,890 points. 

The securities firm suggested investors may continue holding recently opened long positions and watch how the market reacts near resistance levels to decide on profit-taking if the rebound weakens.

Meanwhile, SSI Research said it expects the market to trade in a choppy accumulation and consolidation mode in the near term. Its strategy emphasised prioritising fundamentally strong companies with stable earnings growth in the second half of the year, attractive valuations and regular dividend-paying capacity. 

SSI also noted that businesses with specific catalysts, such as IPOs, divestments, restructuring or potential benefits from the market upgrade process, may have upside for re-rating in the coming period. 

Bizhub