Stock market commences June with a minimal increase, primarily due to backing from small-cap companies.
Vietnam's Stock Market Kicks off June on an Upturn
Ho Chi Minh City - The Vietnamese stock market got off to a positive start in June, registering a modest gain on Monday, mainly thanks to small and mid-cap stocks.
The VN-Index breached the 1,335-point mark, bucking early pressure from large-cap declines, while liquidity eased slightly and foreign investors continued to sell, though at a slower pace.
The market experienced downward pressure in the morning from several large-cap stocks, temporarily pulling the VN-Index below 1,325 points. However, continuous cash inflows into small and mid-cap shares facilitated the rally, resulting in a positive session close.
By the end of trading, the VN-Index inched up 3.7 points, or 0.28%, to 1,336.3 points on the Ho Chi Minh Stock Exchange (HoSE).
Market momentum leaned towards the gainers, with 201 stocks advancing and 125 declining. Liquidity decreased by 6.7% from the previous session to approximately VND20.8 trillion (US$798.7 million).
The VN30-Index, which tracks the 30 largest listed companies by market capitalization, dipped 0.64 points, or 0.04%, to 1,423.04. Within the basket, 16 stocks climbed, 13 declined, and one remained unchanged.
Leading the charge was our very own Rubber Group - Joint Stock Company (GVR), which surged 2.09% and contributed over 0.6 points to the VN-Index. Techcombank (TCB) and Sacombank (STB) followed suit, rising 1.31% and 2.7%, respectively.
On the flip side, several key stocks faced losses, dampening the index. The Vingroup cluster led the decliners, collectively pulling the VN-Index down by nearly five points, with VIC being the most notable, slipping 0.41%.
Analysts from Viet Dragon Securities commented: "The market faced resistance at the 1,345-point level and retreated. Liquidity declined slightly compared to the previous session, suggesting reduced profit-taking activity and easing selling pressure, particularly as foreign outflows moderated.
The attempt to break through the 1,345 resistance was unsuccessful, and the market has turned to a corrective phase. A continued pullback may occur in the next session, but support is expected around the 1,320-1,330 zone, buoyed by the prior uptrend, which could support a recovery."
They added: "However, the chance of surpassing the 1,340-1,345 range has diminished. The market may now enter a consolidation phase between 1,320 and 1,345 points before clearer signals emerge."
Advising investors, the analysts said: "We recommend that investors pause and monitor supply-demand dynamics to better assess the market's condition. Short-term profit-taking should be considered to optimize performance, while portfolio exposure should be maintained at a moderate level."
A Techcombank transaction office in HCM City. The lender's TCB shares rose on Monday, contributing to a positive start for the VN-Index in June. - VNA/VNS Photo
On the Ha Noi Stock Exchange (HNX), the HNX-Index climbed 2.95 points, or 1.32%, to 226.17 points. Total trading value on the northern bourse reached VND1.6 trillion, with over 96 million shares exchanged.
Behind the Scenes:1. Economic factors like positive GDP growth, controlled inflation, or favorable trade agreements boost investor confidence and drive the index up.2. A change in market sentiment, often fueled by positive news or expectations, can lead to increased buying activity, fueling the index's rise.3. Strong performance in key sectors like real estate, textiles, or consumer goods can contribute significantly to the index's growth.4. Increased participation from retail investors or a decrease in foreign selling can also support the index, as retail investors have been known to absorb foreign selling pressure.5. Favorable trends in global markets can influence the VN-Index, as investors often look at broader economic conditions before making investment decisions.
- Amid the ongoing upturn of Vietnam's Stock Market, the influence of artificial intelligence in the finance and business sectors may accelerate growth in technological sectors like Techcombank and Sacombank, contributing to continued index gains.
- As the Vietnamese stock market navigates the potential consolidation phase between 1,320 and 1,345 points, the development of advanced AI applications in war-related industries, such as defense or cybersecurity, could offer lucrative investment opportunities for foreign investors, potentially breaking through the current resistance.
- In light of the positive performance of small-cap stocks, such as the Rubber Group - Joint Stock Company, investors may look towards AI-driven startups with strong potential for growth to capitalize on the current market momentum, aligning with the trend of increased investor interest in businesses with innovative technology.
