Daily Market Watch 18/07/2025: VN-Index Extends Gains but Faces Resistance at 1,500pts

MARKET HIGHLIGHTS

o        The VN-Index sustained its upward momentum from the previous day’s strong rally, advancing further in the morning session and approaching the psychological resistance level of 1,500 points. However, this threshold triggered selling pressure from retail investors, prompting a pullback. The early decline in VIC raised some investor concerns, while weakening foreign inflows - marked by slight net outflows - further dampened sentiment. As a result, the VN-Index retreated to below the reference level by the end of the morning session.

o        In the afternoon, market sentiment improved as a broad-based rally in large-cap stocks, particularly in the banking sector, provided strong support. Investor optimism was underpinned by expectations of solid Q2 earnings from banks, driven by healthy credit growth despite mild NIM compression. Additionally, a notable rebound in MSN helped offset the earlier weakness in VIC. The VN-Index recovered and closed up 0.49%, ending just below the 1,500-point threshold.

o        Retail investors remained highly active, frequently rotating capital across various sectors and stock baskets. This dynamic trading behavior contributed to sustained market strength. Property developers, banks, and select mid-cap names such as HAG, VLB, DHA, and VSC outperformed notably during the session.

o        Liquidity remained robust, with total trading value on HOSE reaching USD 1.38 billion - reinforcing Vietnam’s position as the most liquid equity market in ASEAN. Recent daily trading value have surpassed those of both Thailand and Singapore. Foreign investors recorded a net outflow of USD 4.5 million, with total buying of USD 120.5 million versus selling of USD 125 million. FPT, VCB, and GEX led the net sell list, while MSN, VPB, and SSI saw strong net buying activity from foreign participants.