HÀ NỘI — After two declining trading sessions that saw the VN-Index plummet nearly 74 points, the Vietnamese stock market opened cautiously on August 26. However, as the session was about to close, several stocks, particularly in the banking, securities and real estate sectors, surged to the forefront of a robust market recovery.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index rebounded impressively, gaining 53.6 points, or 3.32 per cent, to reach 1,667. This session marked a significant reversal, with market breadth returning to the positive territory.

During the session, 299 stocks on the HoSE increased, far outpacing the 45 that decreased. However, market liquidity fell 7 per cent from the previous session to VNĐ39.3 trillion (US$1.5 billion), marking the lowest level in 22 sessions.

The VN30-Index also contributed significantly to the overall market performance, rising nearly 66 points with all 30 stocks in the green. 

The banking sector played a pivotal role in this recovery, with all bank stocks seeing positive performances. 

Notably, Vietnam Maritime Commercial Join Stock Bank (MSB) and Sahabank (SHB) hit the maximum daily gain of 7 per cent, while Eximbank (EIB) approached its ceiling with a gain of over 6 per cent. 

Other banks, such as MBBank (MBB) and Seabank (SSB), also saw increases of more than 5 per cent. 

The securities sector mirrored this upward trend, with several stocks, including VNDirect Securities Company (VND), SSI Securities Corporation (SSI), VIX Securities (VIX) and Vietinbank Securities (CTS), reaching their ceiling prices or nearing them. 

Similarly, real estate stocks like DIC Group (DIG), Vinhomes (VHM) and Becamex (BCM) recorded gains of 6–7 per cent.

Đặng Văn Cường, head of investment consulting department at the Mirae Asset Securities Vietnam, said that short-term corrections are an inevitable part of any bull market. They occur to transfer expectations among different investor groups, but it is very difficult to accurately predict when they will happen. 

He emphasised that such corrections present a good opportunity to increase positions and serve as a chance for investors who may have missed earlier opportunities, especially as the market remains relatively attractive in terms of valuation, with rising profits from listed companies and the upcoming upgrade narrative.

The HNX-Index on the Hanoi Stock Exchange (HNX) also edged up by 9.21 points, or 3.45 per cent, to 275.79 points. 

Another bright spot in this trading session was the return of foreign investors, who shifted back to net buying after a prolonged period of net selling. They net bought over VNĐ939.5 billion on HoSE. 

As the market heads into September and October, investors are keenly focused on two significant developments: the Federal Reserve's interest rate reduction trajectory, set to be announced on September 16 or 17, and the potential upgrade of Việt Nam’s stock market status by the end of September or early October.

Both factors are expected to have a substantial impact on foreign capital flows into the market. — BIZHUB/VNS