Latest news with #VN-Index
The Star
a day ago
- Business
- The Star
Foreign investors pile into stocks in July
Focal point: The Hanoi Stock Exchange in Hanoi. The foreign buying of Vietnamese equities last month was the highest seen since early 2023. — AFP HANOI: Vietnam's stock market experienced a vibrant July, marked by the strong recovery of foreign capital flows. After months of subdued activity, foreign investors accelerated their disbursements, net buying more than 8.5 trillion dong or about US$325mil across all exchanges. This marks the highest level of net buying from foreign investors since early 2023, signalling a renewed confidence in the market. On the Ho Chi Minh Stock Exchange, foreign investors recorded a remarkable net buying value of 8.7 trillion dong. They purchased shares worth 93.7 trillion dong and sold 84.9 trillion dong, maintaining a streak of 14 consecutive net buying sessions from July 2 to July 16. The peak session came on July 3, when foreign inflows exceeded 2.27 trillion dong, following positive news on tax policy. It was also among the most notable trading sessions of the year. The highlight of foreign capital activity in July was SSI Securities Corp (SSI), which saw net foreign buying exceed 3.46 trillion dong. The stock experienced 15 consecutive sessions of net buying, with individual days reaching up to 500 billion dong. This not only reflected foreign investors' trust in the securities sector, but also pointed to optimism regarding the broader market outlook for the remainder of this year. In addition to SSI, banking stocks also attracted significant foreign interest, including VPBank with 1.49 trillion dong, Saigon Hanoi Commercial Joint Stock Bank with 1.36 trillion dong, Ho Chi Minh City Development Joint Stock Commercial Bank with 799 billion dong, and TPBank with 542 billion dong. Stocks under the Vingroup umbrella continued to attract inflows, with Vingroup Joint Stock Co receiving over 516 billion dong and Vincom Retail Joint Stock Co drawing 306 billion dong. Other prominent blue-chip stocks like VanEck Vietnam ETF, Mobile World Investment Corp and VNDirect Securities Joint Stock Co were also on the radar of foreign investors. In contrast, Vietjet Air was the most heavily offloaded stock by foreign investors in July, with net outflows exceeding two trillion dong. Notably, on July 22 alone, nearly 1.9 trillion dong worth of shares were sold off. On the Hanoi Stock Exchange, foreign investment remained positive, with a net buying value of over 547 billion dong during the month. Saigon-Hanoi Securities Joint Stock Co led the way with 457 billion dong in net inflows in July alone, bringing the year-to-date figure to over 1.3 trillion dong. CEO Group also stood out with net foreign purchases totalling 176 billion dong. Conversely, the UPCoM market saw net foreign selling of 743 billion dong, concentrated mainly in Masan Consumer Corp and Airports Corp of Vietnam stocks. The strong return of foreign investors significantly contributed to the bullish momentum of Vietnam's stock market in July. The VN-Index rose nearly 9% from the beginning of the month, closing at 1,502.52 points, and even reached a new historical high of 1,564.92 points during the July 29 session – the highest level ever recorded, reflecting a combination of positive domestic and international factors. Experts attributed this resurgence of foreign inflows to growing expectations that Vietnam may soon be upgraded from a frontier to an emerging market. Macroeconomic indicators have also improved, with inflation under control, steady gross domestic product growth and a stable monetary policy framework. These fundamentals are strengthening investor confidence, both domestically and internationally. Nonetheless, some analysts cautioned that the current wave of foreign net buying could be short-lived, as investors might be capitalising on the market's recovery after its April downturn. Given the elevated valuation levels, the possibility of short-term profit-taking remains a key risk that warrants close monitoring to avoid sudden corrections in the near future. — Viet Nam News/ANN
The Star
4 days ago
- Business
- The Star
US tariff policies expected to drive market
HANOI: The domestic stock market closed a bumpy trading week, marking its most substantial correction in nearly a month after a prolonged rally. Analysts viewed this downturn as a necessary adjustment within the broader uptrend, as the market enters a cooling down phase following a sustained period of growth. On the Ho Chi Minh Stock Exchange (Hose), the VN-Index dropped nearly 36 points compared to the previous week, closing at 1,495.21 points, thereby breaking below the psychologically significant 1,500-point threshold. Throughout the week, the VN-Index reached new heights but subsequently plummeted by 64 points, resulting in a weekly fluctuation range of 78 points. Despite the steep decline, market liquidity remained remarkably high, indicating that capital flows are still robust. According to Saigon – Hanoi Securities Co (SHS), after nearly four months of consecutive price increases, including six weeks of significant surges, the market has entered its first correction phase. Notably, July 29 saw a record trading volume of 2.7 billion shares, with a transaction value nearing 72 trillion dong on the Hose. In total, the weekly trading value on the southern bourse reached 243.8 trillion dong, up 31.6% from the previous week, averaging over 1.8 billion shares traded per session. However, the market breadth tilted heavily towards declines, with increased selling pressure in previously hot sectors such as retail, technology, telecommunications, aquaculture, agriculture, steel and real estate. While securities and maritime transport stocks maintained upward momentum for most of the week, they also faced substantial selling pressure on the final trading day. Foreign investors were net sellers, offloading shares worth 4.75 trillion dong on Hose, primarily targeting large caps like SSI Securities Corp, Vietinbank, FPT Corp and Hoa Phat Group. SHS noted that if the VN-Index fails to hold the support level at 1,480 points, the short-term uptrend may come to an end. Meanwhile, the HNX-Index on the Hanoi Stock Exchange finished the week at 264.93 points, up 10.37 points from the previous week. In addition to internal factors, the market has also been influenced by new tariffs imposed by US President Donald Trump, ranging from 10% to 41% on imports from various countries, alongside an additional 40% tariff on transshipment goods to prevent tax evasion. Specific regulations regarding product origins are being finalised and are expected to be issued in the coming weeks. Phu Hung Securities Company (PHS) said the new US tax policy has raised concerns about costs and risks for Vietnamese exporters. In this context, the market has exhibited clear differentiation, with cautious capital flows focusing on fundamentally strong stocks. According to PHS, the market's hesitance is clear with trading volumes falling below the 20-day average. A positive sign is that profit-taking in appealing stocks has not led to widespread negative sentiment, while some large-cap stocks are beginning to rebalance at mid-term support levels. However, for a recovery to be established, the VN-Index needs to surpass and maintain above 1,525 points. If the index continues to consolidate below this level, correction pressures may push it down to the 1,460 to 1,470 point range. Experts from Saigon – Hanoi Securities JSC – predicted that the market would enter a phase of accumulation and adjustment as second-quarter earnings reports are released and short-term supportive factors dwindle. The new tariff policies are expected to directly impact corporate profit prospects starting late in the third quarter, necessitating a reassessment based on macro-economic factors and industry outlooks. The developments in Vietnam's market are not isolated, mirroring a global wave of corrections as worldwide equities had sharply declined in response to concerns over US employment data and new tariff policies from the White House. — Viet Nam News/ANN
Business Times
29-07-2025
- Business
- Business Times
Vietnam stocks slide after record high as short-term risks emerge
[HO CHI MINH CITY] Vietnam's benchmark stock index on Tuesday (Jul 29) saw its sharpest drop in nearly four months with trading volume reaching an all-time high, one day after hitting a record high on the 25th anniversary of the local stock market. The Vietnam Ho Chi Minh Stock Index (VN-Index) closed at 1,493.41, down 4.11 per cent, marking its largest single-day drop since the historic 6.68 per cent plunge on Apr 3, which followed US President Donald Trump's announcement of his so-called 'Liberation Day' tariffs that imposed a 46 per cent levy on Vietnamese goods. Stocks of lenders such as SHB, MBBank dropped by more than 6.5 per cent, while real estate companies including Dat Xanh and Novaland, and brokers such as VNDirect and Vietcap closed at their floor prices, significantly dragging down the index. 'I believe the correction will continue over the next few trading sessions, given the growing presence of short-term risks,' said Nguyen The Minh, head of research and development at Yuanta Securities Vietnam, adding that the VN-Index could fall to as low as 1,380 level in the near term. Minh specifically highlighted the VN-Index's price-to-earnings ratio, which has reached its 10-year average of 15 – a level that may prompt investors to reassess valuations in light of actual second-quarter earnings results. 'Pricing is quite high across the board although forward-looking, it is still not extremely demanding but certainly not... attractive anymore,' noted Tyler Nguyen, chief market strategist at Ho Chi Minh City Securities. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Nguyen added that short-term profit-taking by large funds and high-net-worth individuals, the weakening of the Vietnamese dong amid higher-for-longer US interest rate environment, a margin lending cut by a major retail broker and proposed capital gains taxes on real estate and securities trading also contributed to the market's decline. Analysts said that over the medium to long term, Vietnam remains well-positioned, supported by trade advantages, solid economic fundamentals backed by pro-growth policies, and a potential emerging-market upgrade by index provider FTSE this September. Vietnam's equities have seen an upward momentum since early July, when a new trade agreement with the US was announced that imposes a softer 20 per cent tariff on imports from Vietnam. The Vietnamese index has rallied by 17.9 per cent this year and rebounded by more than 36 per cent from the low on Apr 9, well ahead of Asean peers. The selling spree in the past four trading days by foreign investors have also not reversed the inflows recorded so far this month, which stood at 8.6 trillion dong (S$422 million) as at Jul 28. However, cumulative net buying remains negative, with 32.6 trillion dong withdrawn from local stocks in the year to date, following a net sale of 92.5 trillion dong last year. As external tariff challenges ease and a potential market upgrade approaches, combined with narrowing USD-VND interest rate differentials, Yuanta's Minh believes foreign capital may keep returning to Vietnam's market in the medium term. On Jul 9, JPMorgan Chase upgraded Vietnam to 'overweight' within Asean, expecting that equity flows to reverse into the South-east Asian country's equities amid better-than-expected US tariffs outcome and strong economic backdrop. Despite external challenges, Vietnam's economic expansion accelerated to nearly 8 per cent year on year in the second quarter of 2025, with a major contribution from robust public spending and investment disbursement. The government is aiming for 8.3 to 8.5 per cent gross domestic product growth for the full year, from 7.1 per cent in 2024, creating a foundation for double-digit rates in the 2026-2030 period. Speaking at an event to mark the bourse's anniversary, Don Lam, co-founding partner and chief executive of VinaCapital Investment Management, said Vietnam's stock market should focus on several key objectives over the next five years. These include securing an upgrade to emerging status, enhancing financial literacy, encouraging the participation of institutional investors and modernising trading infrastructure. 'Promoting domestic institutional investors is a key factor for sustainable market development as they play a crucial role in the creation and roll-out of new financial products such as pension funds,' he added, noting that retail investors currently account for 85 per cent of the bourse's daily trading volumes.
Business Times
29-07-2025
- Business
- Business Times
Vietnam's VN-Index smashes record as stock market turns 25
[HO CHI MINH CITY] Vietnam's benchmark stock index hit a record high as investors grew bullish, with the better clarity surrounding the trade deal with the US and improved macroeconomic backdrop supporting the country's economic growth prospects this year. On Monday (Jul 28), the 25th anniversary of the Vietnamese stock exchange, the Vietnam Ho Chi Minh Stock Index (VN-Index) closed at 1,557.42, up 1.72 per cent. Lender VPBank and real estate developer Vinhomes were among the top contributors to the gains. This marks an all-time high for the benchmark VN-Index, surpassing its previous peak in early 2022. The milestone comes after six straight weeks of gains, highlighting sustained bullish sentiment in the market. 'The market may continue its upward momentum, supported by low valuations, strong sentiment, and solid fundamentals,' Petri Deryng, portfolio manager of PYN Elite Fund, wrote in a note last Friday. Deryng suggested that forecasts of the VN-Index reaching 1,800 points by Christmas could be plausible, though he cautioned that sharp pullbacks may occur due to profit-taking by local investors. The Vietnamese index has rallied by 23 per cent this year, well ahead of Asean peers. It has also rebounded by 42 per cent from the low on Apr 9, after US President Donald Trump announced his 'Liberation Day' tariffs. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The South-east Asian nation's equities have maintained an upward momentum since early July, when a new trade agreement was announced that imposes a 20 per cent tariff on imports from Vietnam – substantially lower than the 46 per cent initially proposed. Although the details of the agreement are yet to be finalised, expectations are growing that global investors will further increase their exposure to Vietnamese equities . On Jul 9, JPMorgan Chase upgraded Vietnam to 'overweight' within Asean, reflecting a bullish outlook that the country's stock market will outperform its regional peers. Foreign investors have bought 9.4 trillion dong (S$460.8 million) of Vietnamese shares on a net basis so far in July, the second month of inflows this year. However, cumulative net buying remains negative, with 31.8 trillion dong withdrawn from local stocks in the year to date, following a net sale of 92.5 trillion dong last year. Rising optimism over a potential FTSE upgrade for Vietnam to emerging-market status this September, and a structural shift fuelled by pro-growth reforms are also contributing to the rally of local stocks, noted market watchers. Industrial heavyweight Gelex Group, conglomerate Vingroup, broker VNDirect Securities, and Vietnam Construction and Import-Export are among the top performers on the index this year, as investors bet on key beneficiaries of the country's strong growth. Despite external challenges, Vietnam's economic expansion accelerated to nearly 8 per cent year on year in the second quarter of 2025, with a major contribution from robust public spending and investment disbursement. The government is aiming for 8.3 to 8.5 per cent gross domestic product growth for the full year, from 7.1 per cent in 2024, creating a foundation for double-digit rates in the 2026-2030 period. Speaking at an event marking the 25th anniversary of the local bourse, Don Lam, co-founding partner and chief executive at VinaCapital Investment Management, emphasised that Vietnam's stock market should focus on several key objectives over the next five years: securing an upgrade to emerging status, enhancing financial literacy, encouraging the participation of institutional investors, and modernising trading infrastructure. 'Promoting domestic institutional investors is a key factor for sustainable market development, as they play a crucial role in the creation and roll-out of new financial products such as pension funds,' he added, noting that retail investors currently account for 85 per cent of daily trading volumes on the local bourse.
Business Times
28-07-2025
- Business
- Business Times
Vietnam's VN-Index hits all-time high on 25-year anniversary of local bourse
[HO CHI MINH CITY] Vietnam's benchmark stock index hit a record high as investors grew bullish, with the better clarity surrounding the trade deal with the US and improved macroeconomic backdrop supporting the country's economic growth prospects this year. On Monday (Jul 28), the 25th anniversary of the Vietnamese stock market, the Vietnam Ho Chi Minh Stock Index (VN-Index) closed at 1,557.42, up 1.72 per cent. Lender VPBank and real estate developer Vinhomes were among the top contributors to the gains. This marks an all-time high for the benchmark VN-Index, surpassing its previous peak in early 2022. The milestone comes after six straight weeks of gains, highlighting sustained bullish sentiment in the market. 'The market may continue its upward momentum, supported by low valuations, strong sentiment, and solid fundamentals,' Petri Deryng, portfolio manager of PYN Elite Fund, wrote in a note last Friday. Deryng suggested that forecasts of the VN-Index reaching 1,800 points by Christmas could be plausible, though he cautioned that sharp pullbacks may occur due to profit-taking by local investors. The Vietnamese index has rallied by 23 per cent this year, well ahead of Asean peers. It has also rebounded by 42 per cent from the low on Apr 9, after US President Donald Trump announced his 'Liberation Day' tariffs. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The South-east Asian nation's equities have maintained an upward momentum since early July, when a new trade agreement was announced that imposes a 20 per cent tariff on imports from Vietnam – substantially lower than the 46 per cent initially proposed. Although the details of the agreement are yet to be finalised, expectations are growing that global investors will further increase their exposure to Vietnamese equities . On Jul 9, JPMorgan Chase upgraded Vietnam to 'overweight' within Asean, reflecting a bullish outlook that the country's stock market will outperform its regional peers. Foreign investors have bought 9.4 trillion dong (S$460.8 million) of Vietnamese shares on a net basis so far in July, the second month of inflows this year. However, cumulative net buying remains negative, with 31.8 trillion dong withdrawn from local stocks in the year to date, following a net sale of 92.5 trillion dong last year. Rising optimism over a potential FTSE upgrade for Vietnam to emerging-market status this September, and a structural shift fuelled by pro-growth reforms are also contributing to the rally of local stocks, noted market watchers. Industrial heavyweight Gelex Group, conglomerate Vingroup, broker VNDirect Securities, and Vietnam Construction and Import-Export are among the top performers on the index this year, as investors bet on key beneficiaries of the country's strong growth. Despite external challenges, Vietnam's economic expansion accelerated to nearly 8 per cent year on year in the second quarter of 2025, with a major contribution from robust public spending and investment disbursement. The government is aiming for 8.3 to 8.5 per cent gross domestic product growth for the full year, from 7.1 per cent in 2024, creating a foundation for double-digit rates in the 2026-2030 period. Speaking at an event marking the 25th anniversary of Vietnam's stock market, Don Lam, co-founding partner and chief executive at VinaCapital Investment Management, emphasised that Vietnam's stock market should focus on several key objectives over the next five years: securing an upgrade to emerging status, enhancing financial literacy, encouraging the participation of institutional investors, and modernising trading infrastructure. 'Promoting domestic institutional investors is a key factor for sustainable market development, as they play a crucial role in the creation and roll-out of new financial products such as pension funds,' he added, noting that retail investors currently account for 85 per cent of daily trading volumes on the local bourse.
