Daily Market Watch 16/07/2025: Early Hesitation Followed by Decisive Upswing

MARKET HIGHLIGHTS

o        Vietnam’s stock market staged a strong rebound, with the VN-Index rising 1.0% at the close. The market opened cautiously as investors feared a potential consolidation toward the 1,400-point level following yesterday’s pullback. After several weeks of strong gains, many investors took profits early in the session to lock in returns and reduce risk. However, selling pressure was not as intense as expected, and speculative interest remained high in small- and mid-cap stocks. Large-cap names, especially Vingroup-related stocks, showed resilience and began to recover late in the morning. As investor sentiment improved in the afternoon, fueled by upbeat rumors and news, retail participation surged, supporting a broad-based recovery. The session closed with an improved market breadth of 215 gainers versus 105 losers, surprising many participants with its strength.

o        Liquidity remained high, with total trading value reaching USD 1.26 billion, only slightly down by 4% from the previous day. Local retail flows continued to dominate, as investors actively sought near-term catalysts. Foreign investors remained net buyers, posting a net purchase of USD 9.1 million. Buying was focused on HPG (+USD5.8m), SSI (+USD5.6m), and VPB (+USD5.2m), while selling pressure was seen in HCM (-USD4.9m), VCB (-USD4.3m), and NLG (-USD3.8m). Notably, VCB experienced a large block trade of over 50 million shares at a 3% discount to the reference price, yet still managed to close up 0.65%.

o        Earnings season also began to influence investor behavior. HPG released its 1H2025 results, with revenue rising 5% YoY and net profit jumping 24% YoY. In 2Q2025 alone, revenue dropped 8% YoY, but net profit surged 30%, thanks to widening profit margins as input costs declined faster than steel prices. HPG shares gained 2.36%. In addition, rumors of strong preliminary results in the banking and brokerage sectors contributed to the bullish sentiment, with official reports expected within the next 1–3 weeks.