The Vietnamese stock market performed positively this week, benefiting from policy support and foreign capital inflow. Driven by optimistic investor sentiment, the market experienced a strong upward trend. Following a slight adjustment earlier in the week, the market rebounded for three consecutive trading days, pushing the Vietnam Index close to the 1,300-point level.

The VN Index on the Ho Chi Minh City Stock Exchange (HoSE) closed the week at 1,290.92 points, with a weekly gain of 1.48%. The HNX Index on the Hanoi Stock Exchange (HNX) closed at 235.71 points, with a weekly gain of 0.6%. Both main indices showed weekly increases, reflecting the overall positive market trend.

As investor sentiment became more optimistic, market liquidity also improved significantly. The average trading value for each session this week reached 21.498 trillion VND, an increase of 19.3% compared to the previous week. Notably, trading volumes on all three exchanges saw substantial increases, with some trading days even surpassing the one billion USD mark, indicating active investor participation.

Foreign investors were more active this week, with increased trading volume. Although there was a net sell of 499 billion VND overall, this was mainly due to a one-time large sale of VIB shares (-2.7 trillion VND). Excluding this special transaction, foreign investors showed a strong net buying trend throughout the week, reflecting their confidence in the Vietnamese market.

Phan Tấn Nhật, head of analysis at Saigon-Hanoi Securities (SHS), stated that the stock market received multiple positive macroeconomic news this week, providing strong momentum for capital inflow. Notable developments include: Vietnam’s Party General Secretary and President Nguyen Phu Trong meeting with leading US companies, potentially opening new opportunities for economic cooperation between the two countries; the State Bank of Vietnam significantly increasing the scale of open market operations (OMO) to support banking system liquidity; and the People’s Bank of China (PBoC) announcing a 0.5 percentage point cut in the reserve requirement ratio, while also lowering key policy rates and injecting about 1 trillion yuan (US$141.7 billion) of long-term liquidity into financial markets. These factors collectively boosted investor optimism.

Regarding the market outlook for the coming week, Nhật noted that the VN Index continues to show a relatively positive upward trend after breaking through its highest level of 2023, supported by strong macroeconomic factors. However, the VN Index faces strong resistance near the 1,300-point mark, which has been the highest point for several months. Meanwhile, the VN30 Index rose over 2% to close at 1,352.57 points, successfully breaking through the June high of 1,340 points, but now faces significant resistance between 1,360-1,370 points, marking the connection with the highest price levels of 2023 and 2024.

Nhật predicts that in the short term, the VN Index will continue its growth trajectory with recent support at around 1,280 points. The market aims to break through the resistance zone representing the highest price levels since early 2024 and the peak of August 2022. However, at the psychological resistance of 1,300 points, the market shows clear divergence, making it unsuitable for chasing highs and uncertain for further breakthrough.

Nhật also pointed out that the market is about to end the third quarter and begin the fourth quarter, coinciding with the earnings announcement period. Therefore, he suggests investors maintain a balanced portfolio and consider expanding or increasing holdings in stocks that haven’t shown much recovery and are priced similarly to when the VN Index was at 1,250 points.

The VCBS analysis team believes that the current market trading strategy remains in a stable phase without clear signals. They note that the Vietnamese stock market is showing an upward trend supported by multiple favorable factors. However, they also advise investors to remain cautious, plan investments wisely, and closely monitor market dynamics and influencing factors to make effective investment decisions.

Key points:

• The Vietnamese stock market performed strongly this week, with both VN Index and HNX Index showing increases.
• Market liquidity improved significantly, with average daily trading value increasing by 19.3%.
• Foreign investors showed increased activity, with a net buying trend after excluding a special transaction.
• Multiple positive macroeconomic factors, such as policy support and foreign capital inflow, drove investor optimism.
• The VN Index is approaching the 1,300-point mark but faces some resistance.
• Analysts predict continued growth in the short term but advise investors to remain cautious and monitor market dynamics.
• The market is entering the fourth quarter and earnings announcement period, which may bring new investment opportunities and challenges.

Investor alert! The Vietnamese stock market saw a strong rebound this week, with multiple favorable factors converging and market enthusiasm continuing to rise. The VN Index is approaching the 1,300-point mark, and foreign capital inflow is accelerating. How long can this upward trend last? Contact Jaycy to learn about the latest economic developments in the Vietnamese market and help you seize investment opportunities!