Market treads water as liquidity remains subdued

Market treads water as liquidity remains subdued

Liquidity weakened further, with trading value on the southern bourse declining to nearly VNĐ13.6 trillion (US$523.7 million).

The headquarters of FPT Corporation in Hà Nội. Shares of the company jumped 2.9 per cent on Thursday, supporting the market's sentiment. — VNS Photo Ly Ly Cao

The market benchmark VN-Index remained almost flat on Thursday as cautious capital flows kept trading subdued, while foreign investors returned to net buying as Việt Nam's stock market approaches its scheduled FTSE Russell upgrade.

Following a slight decline in the previous session, the index continued to fluctuate within a relatively narrow range. It even fell below 1,815 points before reversing to gain more than seven points, although the advance later moderated.

The VN-Index, representing the Hochiminh Stock Exchange (HoSE), closed at 1,829.23 points, up 2.11 points.

Liquidity weakened further, with trading value on the southern bourse declining to nearly VNĐ13.6 trillion (US$523.7 million).

The major indices moved in different directions. The VN30-Index gained 9.18 points to 1,976.82 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) fell 1.11 points to 278.37 points.

Among large-cap stocks, Vinhomes (VHM) was the biggest positive contributor to the VN-Index, rising 1.39 per cent and adding approximately 1.73 points to the benchmark.

Technology company FPT Corporation (FPT) gained 2.9 per cent, contributing another 0.77 points. Vietcombank (VCB) and Sacombank (STB) each added around 0.52 points, while Mobile World Investment Corporation (MWG) contributed 0.41 points.

In contrast, Vinpearl (VPL) declined 2.21 per cent and took approximately 0.72 points off the index. PV Gas (GAS) dropped 1.28 per cent, costing the benchmark 0.54 points, while Hoa Phat Group (HPG) fell 0.91 per cent and reduced the index by around 0.35 points.

Vietnam Airlines (HVN), PetroVietnam Refining and Petrochemical (BSR), VietinBank (CTG) and Military Bank (MBB) also ended the session lower.

Against the subdued domestic trading environment, foreign investors returned to the market. They net bought nearly VNĐ355.2 billion on HoSE.

Vingroup (VIC) recorded the largest foreign net inflow at VNĐ248.67 billion, followed by FPT with VNĐ220.5 billion.

The return to net buying came as Việt Nam's stock market moved closer to its scheduled reclassification by FTSE Russell.

Under the planned timetable, Việt Nam will be upgraded from Frontier Market to Secondary Emerging Market status from September 21.

The reclassification follows an extended assessment process by FTSE Russell and is expected to place Vietnamese equities within the group's Secondary Emerging Market universe, expanding access to international investment funds that allocate capital specifically to emerging markets. 

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