After being pressured to take profits and break the impressive increase in the trading session at the end of last week, the stock market opened the first trading session of the new week on August 18 quite positively thanks to the dominance of green on the electronic board.
However, the cautious sentiment after a series of strong increases and a reversal session to adjust down last weekend, while selling pressure is still constant at the price range of 1,640 points, has caused the VN-Index to gradually decrease in height and at times reverse to decrease in points.
The decrease is not too big thanks to the demand force still being absorbed quite positively, especially the cash flow "finding" industry groups that have not " found waves", helping the market quickly reverse and recover to increase.
At the time of closing, the VN Index increased by 6.37 points, equivalent to 0.39%, to 1,636.37 points. However, the liquidity of today's session decreased significantly compared to last weekend's session. The entire HoSE exchange has more than 1.6 billion shares matched, equivalent to a trading value of more than VND 45,000 billion.
In today's session, although foreign investors still maintained sales pressure, their net selling value decreased by about VND1,000 billion compared to the previous session. Accordingly, foreign investors net sold VND 1,947 billion, focusing on SHB, VPB, FPT, VIC, MBB, CTG, MWG, VIC, GEX, HCM codes.
In the newly published strategy report, VNDirect Securities Company assessed that the strong increase in the past two months has caused the market valuation level to increase significantly compared to the beginning of the year. However, after the season of announcing business results for the second quarter of 2025 with many positive colors, plus a short correction of the market at the end of July, the market's P/E returned to attractive areas.
This valuation is still quite attractive at present, with a discount of about 9.6% compared to the 10-year average. VNDirect expects the EPS growth of HOSE listed enterprises to reach about 20-22% in 2025, corresponding to the projected P/E in 2025 of VN-Index being about 13 times. Attractive valuations will help Vietnam continue to be a potential destination for investors.
In addition, the Vietnamese market recorded a profit margin on equity of 13.6%, an outstanding figure compared to other markets in the region. According to VNDirect, a positive business results picture will be an important foundation to help the stock market maintain a stable uptrend in the medium and long term.
However, VNDirect still warns investors to pay attention to the increasing short-term risks. From 2021 to present, every time the stock exchange rate exceeds MA50 to over 80%, the VN-INDEX index has had a correction or differentiation afterwards. With factors such as a positive second quarter 2025 business results season and market valuation returning to an attractive level, VNDirect expects that if there is an adjustment, the level will be relatively mild before the market returns to the next increase.
For a further period, within the next 9-12 months, VNDirect maintains an optimistic view, with the scenario that the VN-Index could move towards the 1,850-1,900 point range. The main drivers include the ability to upgrade the market, the prospect of the Fed loosening monetary policy and solid corporate profit growth, thereby creating a foundation for improving valuations and strengthening investor confidence.
