Vietnam Stock Market Analysis: July 10th - VN Index Declines Despite Strong Foreign Inflows
Continued selling pressure overwhelmed the Vietnamese stock market on July 10th, with the VN Index falling over 12 points to extend its downward trend for a second consecutive session. Despite surprisingly strong net purchases of nearly 1,400 billion VND by foreign investors focused on large-cap stocks, domestic trading activity remained cautious, preventing sufficient buying momentum to support market recovery.
Market Performance Summary for July 10th
The trading session on July 10th witnessed widespread selling pressure across the Vietnamese stock market, causing significant declines in major indices. The VN Index decreased by 12.35 points (-0.89%), closing at 1,377.78 points. This marked the second consecutive session of decline for the index following a sharp correction from its historical high.
The HNX Index also showed weakness, declining by 2.33 points (-0.84%) to reach 275.36 points. Meanwhile, the UpcomIndex experienced a slight decrease of 0.28 points (-0.24%), settling at 97.73 points.
On the HOSE, 158 stocks gained value, 296 declined, and 58 remained unchanged. Total market trading volume exceeded 817 million shares, corresponding to a trading value of approximately 17,000 billion VND.
Foreign Investors' Unexpected Strong Buying Activity
Despite the market's significant decline, foreign investors demonstrated remarkable confidence by executing substantial net purchases worth nearly 1,400 billion VND. This represented a bright spot in today's trading session, indicating that international investors continue to perceive long-term value in selected Vietnamese stocks.
Specifically, foreign investors net purchased over 1,360 billion VND on HOSE, primarily concentrating on large-cap stocks such as VHM (-1.2%), HPG (-2.1%), CTG (-1.8%), MWG (-1.5%), and BID (-1.3%). These purchases occurred despite these stocks experiencing price declines during the session.
Conversely, on the HNX, foreign investors net sold more than 50 billion VND, mainly focusing on stocks like VCG, PVS, and SHB.
Domestic Investor Caution Prevails
In contrast to foreign investors' activity, domestic investors exhibited cautious behavior and tended toward selling during today's session. This was reflected in the significantly higher volume of sell orders compared to buy orders from domestic participants.
Many analysts suggest that risk-averse sentiment continues to dominate decision-making among domestic investors following the market's sharp decline. Profit-taking pressure at higher price levels remains the primary factor preventing immediate market recovery.
Furthermore, ongoing macroeconomic uncertainties both domestically and internationally have made domestic investors hesitant to take risks in the equity market.
Technical Analysis and Market Outlook
From a technical perspective, the VN Index has broken below the crucial support level around 1,380 points. If the index continues to decline and closes below this level in the next session, the downward trend may extend with a target toward the 1,350-point region.
However, the strong net buying activity by foreign investors could serve as a positive signal, indicating their continued confidence in the long-term prospects of Vietnam's stock market. In the short term, the market is likely to experience significant volatility with differentiation among various stock groups.
According to experts, investors should exercise caution, focusing only on fundamentally strong stocks that have declined to reasonable levels. Additionally, maintaining appropriate stock allocation in portfolios is essential to mitigate risks in the current volatile market environment.
Market Performance Summary - July 10th
| Index | Reference Point | Current Point | Change (points) | Change (%) | Volume (million shares) | Value (billion VND) |
|---|---|---|---|---|---|---|
| VN-Index | 1,390.13 | 1,377.78 | -12.35 | -0.89% | 470.8 | 12,432 |
| HNX-Index | 277.69 | 275.36 | -2.33 | -0.84% | 111.5 | 2,103 |
| UPCoM-Index | 98.01 | 97.73 | -0.28 | -0.24% | 234.7 | 2,465 |
Foreign Trading Activity - July 10th
| Exchange | Buy (billion VND) | Sell (billion VND) | Net Buy (billion VND) |
|---|---|---|---|
| HOSE | 2,080 | 720 | 1,360 |
| HNX | 210 | 260 | -50 |
| UPCoM | 75 | 80 | -5 |
| Total | 2,365 | 1,060 | 1,305 |
Conclusion: The Vietnamese stock market continued its negative trajectory on July 10th, with the VN Index declining for a second consecutive session. Despite support from strong foreign net buying, selling pressure from domestic investors dominated the market, making immediate recovery challenging. The short-term outlook remains uncertain, requiring investors to exercise caution and adopt appropriate investment strategies.