Following a strong surge last week that recovered the 1,700-point mark, the index representing the Ho Chi Minh City exchange was expected by many analysis groups to extend its bullish momentum. The index opened Monday's session in the green and consistently widened its range due to capital flowing into leading sector stocks. Before the lunch break, the index traded around 1,734 points, 30 points above the reference level.
The market saw 175 advancing codes, with 26 belonging to the large-cap basket, completely overshadowing the number of declining stocks. Vingroup (VIC) was the main driver for this morning's increase, rising 5,4% to 156,500 VND. According to estimates by VNDirect Securities Company, this code contributed nearly 14 points to the overall index. Two related stocks, VHM and VPL, also traded positively, both rising by about 2%.
By sector, the banking sector showed the most enthusiasm, collectively reversing from declines to gains by the end of the morning session. STB led in terms of gains, hitting its ceiling of 52,400 VND with nearly 9 million shares in excess demand. HDB, TCB, and MBB followed with gains ranging from 2-3%.
Oil and gas sector stocks also made significant contributions to the market with common gains of 1,5%. POW outperformed this group, rising nearly 3% to 12,550 VND.
Conversely, the real estate sector experienced strong differentiation. In addition to Vingroup-related stocks trading positively, some mid- and small-cap codes like NLG, HDG, DIG, and HQC also remained in the green. In contrast, NVL, QCG, SCR, and VRE faced selling pressure, trading temporarily below the reference level and hindering the index's upward momentum.
Liquidity on the Ho Chi Minh City exchange this morning reached nearly 15,600 billion VND, comparable to last week's levels. Capital flowed strongly into leading stocks in the banking, securities, and steel sectors. STB led with over 633 billion VND traded, followed by VIX, SHB, and HPG.
In this week's market strategy report, MB Securities Company's analysis group projected that the VN-Index is likely to rise during the year-end trading days. Potential catalysts for market improvement include optimistic sentiment about a fresh start and expectations for early-year economic policies, coupled with investment fund capital actively buying to "window dress" year-end net asset value (NAV) reports. Additionally, the sentiment of anticipating the Q4 financial reporting season, which will be announced in mid-1 next year, is also expected by the analysis group to help the index rise.
"We believe the short-term market inhibitors (derivatives expiry, ETF portfolio restructuring, or seasonal increases in exchange rates and deposit interest rates) have passed," an MB Securities Company expert said.
Concurring with this view, Yuanta Vietnam's analysis group emphasized that short-term risks show signs of diminishing as the market has fewer impacting events and will enter its NAV closing week. They expect the VN-Index to aim for the 1,772-point range, or even higher at 1,800 points this week.
Phuong Dong
