VN-Index rebounds nearly 2 per cent as broad-based buying lifts sentiment

VN-Index rebounds nearly 2 per cent as broad-based buying lifts sentiment

The VN-Index rebounded nearly 2 per cent on broad-based buying, with technology and financial stocks leading gains and heavyweight shares lifting market sentiment.

Việt Nam’s benchmark VN-Index rose nearly 2 per cent on Wednesday, recovering above the psychologically important 1,700-point threshold as buying spread across most sectors following a series of declines.

The Hochiminh Stock Exchange’s index gained 33 points, or 1.97 per cent, to close at 1,733.02. Meanwhile, the HNX-Index on the Hanoi Stock Exchange advanced 2.57 per cent to end at 257.88.

The recovery was broad-based, with 548 stocks advancing against 186 decliners across the two exchanges.

In the VN30 basket, which tracks the 30 largest stocks by market capitalisation on the southern bourse, 29 gained while one remained unchanged.

Trading activity also picked up. Nearly 909 million shares worth VNĐ18 trillion (US$700 million) changed hands on the Hochiminh Stock Exchange, up 46 per cent in volume and 38 per cent in value compared to the previous session.

The Hanoi Stock Exchange (HNX) saw both trading volume and value double from Tuesday, recording 77 million shares traded, valued at over VNĐ1 trillion.

The rally was supported by gains in large-cap stocks. Vietcombank (VCB), Vinhomes (VHM), VPBank (VPB) and Vietinbank (CTG) together contributed 8.16 points to the VN-Index, helping the benchmark recover from recent losses.

Information technology was the strongest-performing sector, rising 6.65 per cent on average, led by FPT Corp (FPT), which gained 6.94 per cent. Financial stocks advanced 3 per cent, while industrial shares rose 2.32 per cent.

According to analysts, the rebound came after the VN-Index had fallen below the 1,700-point level in recent sessions, raising concerns over the market’s near-term outlook.

Nguyễn Thế Minh, investment banking director at An Binh Securities (ABS), said improving sentiment was partly driven by international developments following the US midterm elections on November 3.

The weakening US dollar and Treasury yields could ease exchange-rate pressure on emerging markets such as Việt Nam, supporting expectations for investment flows and interest rates, he said.

Domestic monetary policy also provided a potential source of support. The State Bank of Vietnam announced plans to provide đồng liquidity to eligible banks through 182-day USD/VNĐ foreign exchange swaps, with a maximum size of $2 billion.

The operation, expected to begin on November 6, could inject nearly VNĐ48.8 trillion into the banking system if the full limit is used.

However, Minh said the market would need a sustained improvement in liquidity and continued gains among leading stocks for the rebound to develop into a more durable recovery.

Meanwhile, MB Securities (MBS) said many stocks had fallen more sharply than the benchmark, as large-cap shares had helped support the index. It recommended investors focus on sectors likely to benefit from policy support, including public investment, construction, building materials and power generation and distribution.

Foreign investors remained net sellers on the HOSE, with net outflows of more than VNĐ66 billion, led by selling in MBB, ACB, BSR and DXG. On the HNX, foreign investors were net buyers with a value of VNĐ7 billion. 

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