Daily Market Watch 03/02/2026: Small / Mid-cap Advanced Despite Record-High Interbank Interest Rate

MARKET HIGHLIGHTS

o       The market opened positively after a pull-back yesterday, driven by enthusiastic bottom-fishing from domestic retail investors. Their focus primarily concentrated in mid-cap stocks as most have been rather underperforming large-cap peers in this rally. Midcap plays in banking, oil & gas, port& logistics, export, industrial parks, etc. surged very well and helped improve sentiment across the board. The entire oil & gas sector posted solid gains of 2–5%. In the banking sector, 23/27 stocks closed higher, with nine names gaining more than 1%. Banking stocks accounted for 27.3% of total matched value on HoSE. Supported by this momentum, the VN-Index ended the morning session up 0.86% (+15.56 points), despite the VN30 only edging up 0.2%. Market breadth was positive, with 186 gainers versus 128 decliners.

o       During the lunch break, news circulated that the overnight interbank rate (ON) had surged to 18.55%. The spike was rumored to stem from (1) the State Treasury withdrawing around VND 150 tn for tax payments, causing CITAD liquidity to fall from approximately VND 280 tn to VND 268 tn, (2) private enterprises increasing cash demand for salaries and year-end bonuses ahead of Lunar New Year, and (3) households withdrawing cash for holiday spending. These factors simultaneously tightened interbank liquidity in the near term. The news started impacting sentiment and led to the cooldown of the Index in the afternoon.

o       Large cap stocks in the VN30 Index reversed and came under pressure in the afternoon session due to strong foreign net selling. Selling pressures intensified in names such as VIC, PNJ, VCB, MWG, ACB and BID, weighing performance. As a result, the VN30 declined 0.3%, underperforming the broader market. In contrast, mid-cap stocks maintained solid gains thanks to continued strong domestic inflows. The rally was quite well spread among different sectors. Noticeably, Gelex stocks (GEE +6.96%, GEX +7.0%, VSC +3.98%, EIB +4.12%, VIX +3.65%) increased quite strongly after a slow period from the begining of the year.

o       We noticed that retail investors are switching their interests to companies with large cash balances amid rising deposit rates, with expectations that these firms would benefit. Based on Q4 2025 data, cash-rich companies such as BVH (+6.97%), GAS (+2.18%), VGI (+4.34%) and SAB (+4.41%) all delivered strong performance during the session.

o       The VN-Index closed at 1,813 points, up 0.38% for the day. Market breadth remained positive with 191 gainers versus 127 decliners, including 15 stocks hitting the ceiling. Liquidity stayed subdued, with total trading value on HoSE reaching USD 1.28 bn (+4.3% DoD).

o       Foreign investors extended net selling for the second consecutive session, with net outflows of USD 24.1 mn on HoSE. Heavy net selling was recorded in VIC (-USD 11.3 mn), PNJ (-USD 8.7 mn), VCB (-USD 7.5 mn), MWG (-USD 6.5 mn), and ACB (-USD 4.8 mn). On the buying side, foreign inflows focused on HPG (+USD 9.6 mn), MBB (+USD 5.3 mn), GEX (+USD 3.0 mn), PVS (+USD 2.2 mn), and SZC (+USD 1.7 mn).