Vietnam Stock Market Update: VN-Index Maintains Stability Amid Volatility, Securities Sector Shines on July 3rd
The Vietnamese stock market concluded trading on July 3rd with a slight decline as the VN-Index dropped by over 4 points. Market liquidity experienced a significant decrease while foreign investors continued to sell aggressively, indicating cautious sentiment among investors. However, capital remained focused on the securities sector, which emerged as the standout performer amidst a backdrop of mixed or weakening performance across most other industry groups.
Overall Market Performance
The VN-Index on July 3rd experienced a rather intense trading session with considerable volatility. According to data from the Ho Chi Minh City Stock Exchange (HOSE), the index decreased by 4.12 points (equivalent to 0.33%), closing at 1,238.92 points. Total market volume reached approximately 821 million shares, corresponding to a trading value of over 15,000 billion VND.
The HNX Index on the Hanoi Stock Exchange declined slightly by 1.21 points (0.47%) to 254.76 points, with a trading volume of 116 million shares worth over 2,400 billion VND. Meanwhile, the UPCoM Index decreased by 0.41 points (0.35%) to 117.24 points.
Market Liquidity Declines
Compared to previous sessions, market liquidity on July 3rd saw a significant decrease. Total trading volume across the market reached only about 821 million shares, a nearly 15% reduction from the weekly average. This indicates that investor sentiment remains cautious and they are not yet ready to deploy capital aggressively.
| Index | Close | Point Change | Percentage Change | Volume (million shares) | Value (billion VND) |
|---|---|---|---|---|---|
| VN-Index | 1,238.92 | -4.12 | -0.33% | 704.8 | 13,125 |
| HNX Index | 254.76 | -1.21 | -0.47% | 116.2 | 2,410 |
| UPCoM Index | 117.24 | -0.41 | -0.35% | 86.5 | 1,215 |
Foreign Investors Continue Net Selling
One notable aspect of the July 3rd session was the continued net selling by foreign investors. According to data from Securities Investment Joint Stock Company (SSI), foreign investors sold approximately 255 billion VND net across the market, primarily focusing on blue-chip stocks.
Specifically, foreign investors sold 237 billion VND net on HOSE, with notable selling pressure on stocks such as VNM (Vinamilk) with 93 billion VND net selling, HPG (Hòa Phát) with 45 billion VND net selling, and CTG (Vietcombank) with 38 billion VND net selling. On the HNX exchange, foreign investors bought approximately 18 billion VND net, primarily focusing on stocks like SHB (Saigon-Hanoi Bank) and PVS (PetroVietnam Services Corporation).
Securities Sector: Market Bright Spot
Despite the overall market downturn, the securities sector stood out as a notable performer on July 3rd. The securities group index increased by 1.6%, leading all sectors in terms of gains. Among the notable performers were VCI (VCI Securities), SSI (SSI Securities), and HCM (Ho Chi Minh City Securities), all of which experienced significant price increases.
According to market analysts, capital is flowing into the securities sector due to expectations of market recovery in the second half of the year. Additionally, securities companies have reported strong business results in Q2/2023, providing momentum for the sector's upward trajectory.
| Sector | Change % | Representative Stock | Change % |
|---|---|---|---|
| Securities | +1.6% | VCI | +3.2% |
| Banking | -0.3% | CTG | -1.8% |
| Real Estate | -0.5% | NVL | -1.2% |
| Food & Beverage | -0.4% | VNM | -1.5% |
| Steel | -0.7% | HPG | -2.1% |
Analysis and Market Assessment
According to Mr. Nguyen Van Dung, an analyst at ABC Securities, the Vietnamese stock market is currently in a phase of volatility between buying and selling forces. "The decline in market liquidity indicates that investors remain cautious and are not yet ready to deploy significant capital. However, the relatively modest net selling by foreign investors, concentrated on certain blue-chip stocks, suggests they maintain long-term confidence in the market's prospects," Mr. Dung commented.
Ms. Tran Thi Mai, Director of Market Analysis at DEF Securities, stated: "The concentration of capital in the securities sector is a positive signal. Securities companies have delivered strong business results in Q2/2023, and expectations of market recovery in the second half of the year will likely continue to drive this sector's performance in the coming period."
Market Forecast
According to experts, in the short term, the market may continue to fluctuate within a narrow range as capital remains cautious. However, the long-term outlook remains positive due to economic stability and favorable macroeconomic factors.
For investors, analysts recommend focusing on sectors with promising prospects such as securities, banking, and technology. At the same time, it is crucial to closely monitor international market developments and domestic macroeconomic factors to make suitable investment decisions.
Conclusion
The July 3rd trading session concluded with the VN-Index slightly declining amid reduced liquidity and continued net selling by foreign investors. However, the securities sector emerged as a market standout, attracting strong capital inflows. In the context of ongoing market volatility, selecting the right sectors and stocks with growth potential will be crucial for investors to achieve favorable outcomes.
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