Daily Market Watch 28/07/2025: Market Hits All-Time High with Record Liquidity

MARKET HIGHLIGHTS

o        The VN-Index surged strongly and surpassed its all-time high of 1,535 points today, accompanied by record-breaking trading value. Retail investor sentiment remained extremely bullish, driven by expectations of continued economic strength, robust corporate earnings growth, and the potential for an Emerging Market (EM) status upgrade in September. This marks one of the three most significant rallies over the past decade, comparable only to the foreign capital-led surge in 2017 and the retail-driven boom during the 2021 pandemic.

o        Retail participation was exceptionally solid, signaling a possible extension of the rally. Stocks and sectors popular with retail investors such as brokerages, real estate, materials, banking etc. recorded sharp gains with exceptionally high liquidity. While profit-taking was evident following recent strong performance, aggressive buying interest quickly absorbed the supply. With market momentum remaining solid, many investors appear to be in a state of FOMO, and few anticipate a near-term correction. They just jump in to get some positions rather than staying in the sideline wait for any correction to avoid being miss out.

o        The VN-Index  settled at a new record high of 1,557.42 points (+1.7%), Market breadth was decent with 258 advancers versus only 81 decliners, reflecting widespread optimism. There were 33 stocks hit limit up prices, most of which are familiar mid-cap stocks which retail investors love to play around with. Many stocks gained over 4% and outperformed the Index as retail investors turned their focus on small/mid cap stocks. On the other side, the large-cap basket also posted more modest gain at +1.6% gain.

o        Matched order value on the HoSE and HNX combined reached nearly ~USD 1.86 bn, the highest level ever recorded. The record-high liquidity also reflected rising profit-taking pressure, as a large supply of shares was released to the market. Some investors are seizing the opportunity to lock in gains, yet buying demand was good enough to consume all overhang.

o        In contrast to the domestic bullish sentiment, foreign investors extended their net selling streak.  They recorded total sales of USD 178 mn against purchases of USD 137.6 mn, resulting in a full-day net outflow of USD 40.4 mn on HoSE. HPG was the most heavily sold stock with USD 16.1 mn in net outflows, though its price still rose 1.15% at close. FPT inched up 0.54%, continuing to underperform the large-cap group over the past three weeks. Other names with net outflows exceeding USD 3.85 mn included GVR, VIX, and SSI, with GVR gaining a modest 0.64%. On the buying side, SHB was the top net bought stock by foreign investors with ~USD 12.9 mn in inflows. However, foreign trading accounted for only 16% of SHB’s total turnover for the day.