VN-Index rebounds despite low liquidity

VN-Index rebounds despite low liquidity

After strong fluctuations during the morning session, buying demand increased among large-cap stocks in the afternoon, helping the market return to positive territory.

An investor watching the market's performance while talking on the phone. — Photo vietnamplus.vn

Indices ended mixed on Friday, with the VN-Index recovering as buying demand returned to large-cap stocks, particularly those in the Vingroup ecosystem. However, lower liquidity, a market breadth tilted towards decliners and continued foreign net selling showed that capital flows remained cautious.

The Hochiminh Stock Exchange (HoSE)'s VN-Index increased 10.02 points to 1,785.11 points. 

Trading on HoSE, however, remained in the negative territory, with 188 stocks declining, compared with 149 gainers. Liquidity was lower than the previous trade, decreasing to nearly VNĐ15.3 trillion (US$588 million).

After strong fluctuations during the morning session, buying demand increased among large-cap stocks in the afternoon, helping the market return to positive territory.

Vingroup-related stocks were the main focus. Vinhomes (VHM) gained 5.66 per cent, while Vinpearl (VPL) rose 2.18 per cent, Vincom Retail (VRE) advanced 1.45 per cent and Vingroup (VIC) increased 0.87 per cent.

Given their large market capitalisations, the group made significant contributions to the VN-Index and became the main driver of the benchmark's recovery after two consecutive sessions of sharp declines.

Other large-cap stocks also posted strong gains. VPBank (VPB) advanced 4.07 per cent, Gelex Electric (GEE) rose 4.23 per cent, Nam A Commercial Joint Stock Bank (NAB) gained 3.33 per cent and PetroVietnam Refining and Petrochemical Corporation (BSR) increased 1.33 per cent.

In contrast, the HNX-Index on the Hanoi Stock Exchange (HNX) lost 0.56 points to 272.21 points. 

Foreign investors continued to put pressure on the market, although their net selling declined considerably compared with previous sessions. They net sold VNĐ254 billion on HoSE and VNĐ2.23 billion on HNX. 

Bao Viet Securities said sustained selling pressure in recent sessions had caused the market to lose several important support levels.

It said bottom-fishing demand could help the VN-Index find a temporary equilibrium around 1,775 points and trigger a technical rebound. However, the risk of a further decline towards 1,760 points remains if liquidity fails to improve as the index approaches the 1,790–1,795 resistance zone.

Therefore, Bao Viet Securities recommended that investors prioritise risk management and avoid rushing to bottom-fish. Rebound sessions could instead be used to restructure portfolios and manage equity exposure.

BIDV Securities (BSC) also assessed the market as showing signs of weakness, with several technical indicators sending less positive signals.

According to BSC, the 50-day simple moving average (SMA50) is an important support zone. If buying demand is insufficient to maintain this level, the VN-Index could continue falling towards the 1,720–1,730 area. 

Bizhub