The recovery of the VN-Index last week delivered positive signals, supported by several favourable macroeconomic factors. However, market liquidity remains low, and the outlook still carries inherent risks.
Market breadth leaned positive, with 183 stocks advancing and 104 declining. Liquidity on the southern bourse dipped slightly to VNĐ11.9 trillion (approximately US$468.1 million), a decrease of 6.2 per cent compared to the previous session.
Throughout the week, the market continued its downward trajectory amid unfavourable macroeconomic conditions. The VN-Index lost a significant support level and appeared to be heading towards deeper support zones. This volatility raised concerns among investors about the market''s short-term prospects.
With rising stock market returns and reduced corporate borrowing costs, SBV’s policy direction should positively impact business performance and stock market growth.
The Vietnamese stock market is contending with a range of domestic and global factors, with recent reports of weak business performance hindering substantial progress for the VN-Index.
The swift efforts by the Vietnamese securities regulator to eliminate pre-funding requirements have garnered praise from FTSE Russell and Morgan Stanley.
The Vietnamese stock market is currently in a transitional phase, presenting both opportunities and challenges. Notably, attention should be given to the sectoral divergence and the cautious stance of foreign investors.
The VN-Index ended the week with impressive gains. However, analysts remain cautious about the sharp decline in liquidity and raise concerns about the sustainability of this upward momentum.
Three banks from the ''Big Four'' group — Vietcombank (VCB), BIDV (BID), and VietinBank (CTG) — have made it into the top five largest companies by market capitalisation on Việt Nam’s stock exchange.
Masan Group Corporation (HOSE: MSN) is expected to attract significant foreign capital as Việt Nam’s stock market is projected to receive up to US$1.7 billion from exchange-traded funds (ETFs) following its upgrade to emerging market status.