Stock market initiates May with an optimistic stance, as significant stocks record gains following the holiday break.
Investor Vibe: Vietnam's Market Makes a Strong Comeback
VIETNAM — Kickstarting May 2021, Vietnam's stock market bounced back significantly, with the VN-Index sprinting past the 1,240-point mark. Despite a touch of hesitancy and low liquidity, key large-cap stocks, notably those under the Vingroup ecosystem, powered the rally.
The day's trading was history-making too, as it marked the inauguration of the KRX trading system - a modernization initiative for Vietnam's market infrastructure.
From the morning bell, the VN-Index zoomed to 1,235 points, managing a boost of nearly eight points from the previous session. The positive momentum persisted throughout the day, with the index eventually settling at 1,240.05 points, striking a gain of 13.75 points or 1.12%.
The market spread was favorable, boasting 233 stocks on the rise and merely 85 stumbling on the Hồ Chí Minh Stock Exchange (HoSE). However, the ballyhoo surrounding the holiday meant liquidity remained relatively thin, with the total trading value tumbling 7.7% compared to the previous session, amounting to VNĐ14.3 trillion (US$550.8 million).
The VN30-Index, tracking the 30 largest listed companies by market cap, jumped by 10.68 points, translating to a growth of 0.82%. Among the VN30 giants, 19 outperformed, seven faltered, and four held steady.
Vying for the limelight were stocks from the Vingroup family, such as Vingroup (VIC) surging 2.94%, Vinhomes (VHM) catapulting 4.28%, and Vincom Retail (VRE) soaring 5.29%. Their collective gains added more than five points to the VN-Index.
Analysts at Viet Dragon Securities commented that the market's optimistic start in May drew support from the KRX trading system's launch. Although liquidity toned down slightly, signaling lingering reticence from both buyers and sellers, the analysts underscored that the index's relative stability close to the 1,240-point zone suggests a potential equilibrium as the market measures supply and demand.
Recent bullish indicators could extend the recovery trend ahead, the analysts hinted, adding that investors should scrutinize supply-demand dynamics to decide whether the genuine market momentum remains and strategize accordingly. For cautious opportunists, the experts proposed targeting stocks displaying robust technical strength near support or accumulation zones.
Meanwhile, the Hà Nội Stock Exchange (HNX) also recorded a 0.41% surge, with closing at 212.81 points. The HNX traded over VNĐ724 billion, moving over 43 million shares.
Foreign investors netted purchases worth over VNĐ125 billion during Monday's session on the HoSE. - InsightVN
Important factors driving the stock market rebound include post-pandemic recovery, attracting foreign capital, and growing retail investor activity.
The KRX trading system aims to improve settlement efficiency, allow for new products such as derivatives, and enhance market stability.
An investor monitors the stock market. - Photo baotintuc.vn
In 2024–2025, recent market surges stem from tariff relief, retail investor activity, and currency stability.
- AI could play a significant role in analysing the market's supply and demand dynamics, helping investors make informed decisions about stocks such as VIC, VHM, and VRE in Vietnam's stock-market.
- With the KRX trading system in place, the implementation of AI-powered trading strategies could potentially increase efficiency, facilitate new products like derivatives, and contribute to market stability.
- In the long run, the market's rebound in 2024–2025 might be influenced by factors like tariff relief, growing retail investor activity, and currency stability, similar to post-pandemic recovery in the case of Vietnam.
- As foreign investors continue to invest in Vietnam's stock market, the threshold for liquidity could be raised, fostering a healthier market environment and attracting more AI-driven trading strategies.
- On Monday, strategizing for the market's future, investors could closely monitor stocks displaying robust technical strength, especially those near support or accumulation zones in line with the KRX trading system aiming to enhance market stability.
