Daily Market Watch 22/07/2025: VN-Index Closes at Day’s High to Surpass The 1,500pts Threshold

MARKET HIGHLIGHTS

o        The VN-Index opened with a brief decline of 8 pts, reflecting investor concerns over a draft proposal to impose capital gains tax on securities transactions. However, this pullback was short-lived, lasting only about 30 minutes. Supported by steady retail inflows into large-cap stocks, particularly from bottom-fishing sentiment, the VN-Index reversed course and gained 6.07 pts by the end of the morning session.

o        Momentum strengthened in the afternoon as retail participation intensified. The index advanced steadily, surpassing the 1,500 pts threshold and significantly boosting market confidence. Many local investors now expect the VN-Index to hold above this level and soon challenge its all-time high of 1,535 points. Bullish sentiment was broad-based, with notable gains concentrated in two key groups: (1) Vingroup-related stocks and (2) stocks associated with the Gelex ecosystem. Specifically, VIC (+4.91%), VHM (+3.80%), and VRE (+3.45%) collectively contributed 9.11 points to the index’s rise. Meanwhile, Gelex-affiliated stocks such as GEX, VIX, and EIB hit ceiling prices, while GEE rose 4.36%, helping lift the index to close at the day’s high of 1,509 points (+1.65%).

o        Market participants digested news regarding the Ministry of Finance’s draft proposal to revise personal income tax regulations on securities trading. The draft suggests a 20% tax on capital gains. In cases where the acquisition cost cannot be determined, a 0.1% tax on the total transaction value would apply. However, details regarding the implementation, such as the definition of eligible costs and the method for calculating capital gains, remain unclear. 

o        While the proposed changes initially raised concerns about a potential negative reaction from retail investors, who would be most affected, the market response was relatively muted. Given that most retail activity is short-term in nature and that the draft must still undergo consultations with other ministries and stakeholders, investors appeared willing to wait for more clarity before reacting decisively. 

o        Market liquidity remained elevated, reaching USD 1.28 bn. Securities stocks attracted renewed capital inflows, with SSI, VIX, and VND ranking as the top three most actively traded stocks by value.

o        Excluding a large put through transaction which led to foreign outflow worth USD 77 mn in VJC, foreign investors posted a net buy of USD 4.77 mn. Total foreign buying reached USD 139 mn, while selling came in at USD 211 mn. Net buying was concentrated in the afternoon session, with notable purchases in  HPG (+USD 2.61 mn), TPB (+USD 2.41 mn), VCB (+USD 2.31 mn), and FPT (+USD 2.12 mn). On the sell side, aside from the negotiated sale of VJC (-USD 77 mn), other significant net outflows included  SSI (-USD 8.88 mn), SHB (-USD 6.00 mn), and PDR (-USD 3.92 mn).