Daily Market Watch 04/07/2025: The Index Extended Gains on Upbeat 1H2025 Macro Update

MARKET HIGHLIGHTS

o        Vietnam equity market edged up as investors responded positively to the release of strong 1H2025 macroeconomic data from a government meeting held late yesterday. In which, GDP growth for 1H2025 was estimated at 7.3%, with an upside potential of 0.2–0.3%, marking the highest first-half growth in nearly two decades. Inflation remained contained at 3.27%. FDI inflows were resilient with registered capital reaching USD 21.5 billion (+32.5% YoY) and disbursed capital at USD 11.7 billion.Trade activities remained strong despite tariff concerns, with total trade turnover up 16.1% YoY to USD 432 billion and a trade surplus of USD 7.63 billion. Credit growth accelerated to 8.3% YTD (+18.87% YoY), the fastest expansion pace since 2023. Retail sales grew  9.3% YoY, and international tourist arrivals surged 20.7% YoY, reaching 10.7 million visitors.

o        The robust macro data lifted market sentiment, prompting investors to return to the market with renewed enthusiasm.  The VN-Index added 0.36%, closed at 1386.97 pts. Buying interest remained concentrated in small- and mid-cap stocks, with notable sector rotation into domestic-driven industries such as Brokerage, Real Estate, IT, Consumer Discretionary, and Energy, amid higher-than-expected tariff level.

o        Liquidity eased slightly to USD 787 million in total trading value as selling pressure subsided following yesterday’s rush. Meanwhile, buying activity showed more conviction. Foreign investors continued their net buying streak for the second session, recording a net purchase of USD 58.8 million on HSX, bringing MTD net inflows to USD 168 million.Their top net-buying targets included: FPT (+USD 17.6 million), ACB (+USD 10.5 million), and MWG (+USD 5.1 million). These stocks are typically favored by long-term foreign institutions. On the sell side, foreign investors offloaded: VIC (-USD 5.2 million), GEX (-USD 3.1 million), GVR (-USD 2.8 million)