Vietnamese stock market index reaches a new peak, closing above 1,600 units
Vietnamese Stock Market Hits New Historic High
The Vietnamese stock market reached a new milestone on Tuesday, with the VN-Index surpassing the 1,600-point psychological threshold. The index closed at 1,608.22 points, marking the seventh consecutive session of the VN-Index surpassing its previous high.
The northern exchange's HNX-Index also saw a slight increase, inching up 0.01 points to end at 476.47 points. Meanwhile, the VN30-Index, which tracks the performance of the 30 largest stocks, rose by 13.35 points to close at 1,755.25 points.
The market's upward trend is expected to continue, with analysts predicting further upside potential. SHS analysts, for instance, project that the VN30 Index could reach its target range for this rally between 1,750 and 1,800 points.
The historic new high in the VN-Index was fueled by several key factors. Strong earnings growth of listed companies was a significant contributor, with second-quarter 2025 post-tax profits attributable to shareholders rising by 31.5% year-on-year. Full-year 2025 earnings are expected to grow 13.8%.
Robust cash inflow and liquidity also played a crucial role. There was an unprecedentedly high inflow of cash into the market, pushing the index beyond 1,600 points. Transaction values set new records, reaching VND 259.5 trillion ($9.87 billion) during August 11-15, with an average daily volume of over 1.75 billion shares.
Stocks in sectors such as steel, construction, fertilizer, agriculture, seafood, oil and gas, real estate, financials, insurance, securities, and banking posted broad gains. Blue-chip stocks, particularly the BID banking shares, led the market advance.
The market breadth was tilted towards gainers, with over 220 stocks rising compared to fewer decliners. Key large-cap stocks including MBB, EIB, VIB, SHB, VCB, BID, and certain real estate stocks surged, even hitting price ceilings, while a few others declined, indicating sectorial differentiation but overall positive momentum.
Despite foreign investors continuing net selling, the strong domestic investor interest and cash inflows helped sustain the rally. The transaction office of BIDV led the entire market on the day the VN-Index surpassed 1,600 points.
Liquidity was largely unchanged from Monday, up 0.2 per cent to VND45.3 trillion ($1.72 billion). Liên Việt Post Joint Stock Commercial Bank (LPB) surged 6.28 per cent in the trading day, while Hò Chí Minh City Development Joint Stock Commercial Bank (HDB) rose by 3.58 per cent. Bank for Foreign Trade of Việt Nam (VCB) saw an increase of 0.8 per cent.
Total trading value on the Hà Nội Stock Exchange reached VNĐ3.1 trillion, equivalent to more than 141 million shares changing hands. Although selling pressure increased towards the end of Tuesday morning, the strong afternoon performance of blue-chip stocks helped the VN-Index break through the 1,600-point mark.
Foreign investors continued to record a modest net selling streak during the trading day. Vinhomes JSC (VHM) led the decliners, falling 0.53 per cent and shaving nearly 0.5 points off the VN-Index.
In summary, the historic new high in the VN-Index was fueled by strong corporate earnings, unprecedented liquidity and cash inflow, key sector rallies, sustained positive momentum, and resilient domestic investor demand despite foreign net selling.
- The surge in the Vietnamese stock market, with the VN-Index breaking past 1,600 points, is not just a local development, but indicates a significant trend in the global finance and business industry.
- The AI-driven trade sector is closely watching the Vietnamese stock market's trajectory, as the prolonged upswing points towards potential investment opportunities in developing industries like finance and technology.
- Concurrently, the ongoing war in various regions has had a mixed impact on the global economy; however, the resilience of the Vietnamese stock market, even in the face of external challenges, showcases the robustness of the nation's economy and its ability to withstand adversity.
- As these trends continue to unfold, it's essential for the industry to closely monitor the Asian market, particularly the breakthroughs in the Vietnamese stock market, to better understand the global trading landscape and make informed decisions for long-term investment strategies.
