Investors' optimism sentiment was maintained throughout the trading session on October 6 with the three main pillars including banking - securities - steel continuing to be stronger, especially the group of stocks that floated high as stocks competed to show off their purple color.
The most anticipated information is that there are less than 48 hours left, the most anticipated important decision for investors at the moment will be announced. If officially upgraded, Vietnamese stocks can attract billions of USD in foreign capital and moreover, elevate the national position in the international arena, thereby aiming for further goals such as the advanced emerging market of FTSE and meeting the criteria of MSCI.
The market ended the trading session with an impressive increase of nearly 50 points, approaching the peak of 1,700 points with the number of stocks increasing by nearly 4 times the number of stocks decreasing. At the end of the trading session, VN-Index increased by 49.68 points to 1,695.5 points; HNX-Index increased by 8.94 points to 274.69 points. The breadth of the entire market with the overwhelming green color when the buyers have 542 codes increased and the sellers have 194 codes decreased. Similarly, green is somewhat dominant in the VN30 basket with 29 codes increasing and 1 code decreasing.
Market liquidity increased compared to the previous trading session, with the trading volume matched by the VN-Index reaching more than 1 billion shares, equivalent to a value of more than VND 29,500 billion. Liquidity has improved positively with the return of the billion-unit trading session, but the trading value is still lower than the average of the last 20 trading sessions, showing that cautious sentiment has not been broken and information about the possibility of upgrading will still be the main factor to help the market continue to move forward.
In terms of industry groups, the whole market has no decreasing groups. In particular, the securities group is still leading with purple color spreading throughout the industry. In the next position is the remaining pair including the banking and steel groups. The real estate group is also not out of the picture. In addition to VHM increasing by 2.7%, VIC increasing by 1.8%, VRE increasing the ceiling; other stocks in the group such as DIG and PDR closed to increase the ceiling with liquidity reaching more than 10 million units.
While domestic demand has actively participated, helping the general market have a strong increase of nearly 50 points, foreign investors have yet to show any signs of cooling down when they continue to net sell more than VND1,900 billion. Since the beginning of the year, foreign investors have net sold more than VND100,000 billion - the highest level in many years, surpassing the previous year.
On the contrary, domestic cash flow maintains caution in the short term but has not fallen into a pessimistic state: domestic investors do not increase their purchases, but do not sell heavily to foreign investors. This development is likely to reflect profit-taking activities after an increase of more than 30% of the index since the beginning of the year.
The net selling trend of foreign investors is also occurring in other Southeast Asian markets such as Malaysia, the Philippines and Thailand, showing the general cautious sentiment of investors towards emerging markets in the context of increasing global fluctuations.
The ownership ratio of foreign investors in the Vietnamese stock market has now decreased to below 15.8% - the bottom for many years, showing that the room for net selling is no longer too large. With the prospect of upgrading the market and the possibility of the US Federal Reserve (Fed) continuing to lower interest rates in the end of October session, the opportunity to welcome a new wave of foreign capital in the period of 2025 - 2026 still exists. In the short term, the impact of foreign capital will gradually narrow, domestic cash flow will enhance its leading role.
Investors assessed that, macro-wise, the economic indicators released yesterday afternoon were quite impressive, supporting this increase, high GDP and inflation still under control. If the upgrading information appears this week, the index may have another good increase for the whole week.
