Daily Market Watch 01/07/2025: The Index Inched Up Slightly Despite Profit Taking

THE EQUITY MARKET

o        The Vietnam equity market traded within a narrow range throughout the session as investor sentiment remained cautious. While the VN-Index has recently surpassed the 1,370-point resistance level, optimism for a swift move toward 1,400 points was tempered by weakening momentum and uninspiring liquidity. Profit-taking activities became more pronounced, particularly among small- and mid-cap stocks. The VN-Index closed marginally higher at 1,377.8 points (+0.13%), though breadth remained weak with 196 decliners versus 117 advancers on the HOSE.

o        Market liquidity increased by 11.4% compared to the previous session, largely driven by stronger selling pressure. Buyers appeared more restrained, contributing to a broad-based decline across many stocks. Foreign investors net sold approximately USD 12.8 million, led by significant block trades in VJC (-USD 14.2 million) and HDB (-USD 8.4 million). Notably, these put-through transactions were executed at substantial premiums to the reference prices (+5.9% for VJC, +7.0% for HDB), despite ample foreign room in both stocks. This may suggest the possibility of internal transfers. Elsewhere, foreigners were net buyers of HVN (+USD 2.7 million), MSN (+USD 2.4 million), and TCB (+USD 1.37 million). Particularly there were a few crosses in MBB among foreign participants at limit up price. MBB's foreign ownership premium increased from 3% to 7% recently.