Daily Market Watch 14/08/2025: Banking Rally Pushed The Index Up Strongly

MARKET HIGHLIGHTS

o       The Index continued flying high today with 1.8% gain. It opened in a bullish tone in the morning, contributed by the solid rally of banking stocks. Most banks traded positively thanks to the amendment to the Circular 30/2019 on Reserve Requirements. In which, there would be 50% reduction in reserve requirement ratio for credit institutions who provide supports or undertake compulsory transfers weak banks, starting from October 1, 2025. Investors believe that a number of banks including HDB, VCB, MBB, and VPB shall enjoy from the new regulations.

o       Interestingly, not just those 4 names, all banks moved up significantly as the market sentiment was quite good. This pushed both the large-cap basket and the Index up well despite of profit taking. The Index were even stronger in the afternoon and closed at near its intraday high level.

o       The Large-cap basket outperformed with 2.3% gain thanks to the stellar performance of banking stocks. MBB, ACB, VPB, and HDB surged to limit up (+7%) with a high liquidity. Other banks such as VCB (+4.32%), SHB (+5.43%), SSB (+4.26%), TPB (+3.39%), etc. also posted notable rally. VJC also closed at limit up as it won the contract to operate 2 hangars (No.3 and No.4) for aircraft maintainance in the Long Thanh Air Port. Besides, Thai Vietjet is buying 50 new Boeing 737 Max to expand its positioning in Thailand. Investors were excited and bought the stock well.

o       The Mid-cap Index followed with 1.3% gain, mainly contributed by mid-cap banks such as NAB (+5.16%), MSB (+4.19%), OCB (+3.94%). Besides, several stocks delivered notable performance including HDG (+6.98%), VSC (+6.93%), VIX (+6.92%), and CII (+6.86%). However, other familiar mid-cap stocks started facing visible profit taking as many investors saw that the current Index level is rather high and they anticipated an market adjustment ahead. FRT (-3.44%), VGC (-3.04%), PHR (-2.82%), GEE (-2.81%) were among the worst players.

o       Small-cap stocks did not really enjoy the rally today. We saw a great divergence in performance. Several stocks did well including BIC (+6.86%), CSM (+6.79%), CRE (+6.77%). However, many retreated due to the prompt selling by retail investors who are afraid of a possible correction ahead. As a result, number of advancers outperform that of decliners in the market today.

o       Liquidity remain decent. Total traded value in HOSE reached USD2bn (-5.56% DoD) as banking stocks were bought in well. Besides, many small/mid were sold by retail investors and saw higher trading volumes. Foreign investors continued dumping Vietnamese equities with USD91m net sell value, focusing on HPG (-USD16.7m), FPT (-USD14.4m), and SSI (-USD11.3m).