On the 24th of April, the domestic stock market reversed its previous downward trend and surged. The VN-Index quickly recovered to 1,200 points and closed at 1,205.61 points, marking a significant increase of 28.21 points (+2.4%) and making Vietnam one of the strongest performing markets globally during that day. Market indicators on the Hanoi Stock Exchange also witnessed a notable uptick.
The turnaround in market sentiment was evident as the gloomy mood among investors following the nearly 13-point decline on April 23rd dissipated, replaced by a rapid surge in the market. The majority of stocks traded positively, with the number of advancing issues outpacing decliners by more than 6-to-1 (435 gainers compared to 69 losers). Despite continued net selling of over VND 240 billion by foreign investors, the market’s upward momentum remained unyielding.
Nevertheless, many individual investors expressed a sense of vertigo and regret over the “excessively rapid and substantial” market movements witnessed over the past three days. Those who had enthusiastically purchased stocks during the strong rally at the beginning of the week found themselves anxious to sell off during the subsequent decline. Now, they watched helplessly as the stocks they had “cut their losses” on rebounded, hesitant to re-enter the market.
Recent market volatility has left investors feeling disoriented. Photo by HOANG TRIEU
According to BETA Securities, technology stocks, particularly FPT, were instrumental in driving the market’s rapid and robust rally. FPT’s shares hit the ceiling price and surpassed their 52-week high following news of the corporation’s partnership with tech giant NVIDIA to establish an artificial intelligence (AI) factory.
Furthermore, analysts at Construction Securities Corporation (CSI) attributed increased investor optimism to signs of stabilization in the USD/VND exchange rate following decisive intervention by the State Bank of Vietnam. However, despite the significant increase in the market index, trading volume remained relatively low, indicating that many investors were still hesitant to buy after the recent sharp declines. Trading volume on the HoSE exchange was down by 22.3% compared to the 20-session average.
In an interview with the Nguoi Lao Dong newspaper, Phan Nguyen Huu Phuong, Head of High Net Worth Clients at DNSE Securities, highlighted the positive impact of the announcement regarding the official launch of the KRX system in early May, which eased investor concerns. Additionally, the recovery of global stock markets over the past two days provided further support. “With the strong rally on April 24th, the market has established a short-term bottom, but a period of observation and monitoring is necessary to determine the formation of a new uptrend,” Phuong said.
Vo Kim Phung, Head of Analysis at BETA Securities, echoed these sentiments, emphasizing that the State Bank of Vietnam’s interventions had contributed to slowing the decline of the exchange rate. He also cited the KRX system launch and the Prime Minister’s directive on raising the securities’ trading limit as positive factors supporting the market.
Moreover, the recent steep decline had brought the VN-Index below 1,200 points, pushing many stock prices to attractive levels and triggering an influx of medium- to long-term investment capital. “Negative news had already been factored into the market during last week’s downturn. At present, investors should focus on stocks in promising sectors such as banking, which has seen a flurry of dividend announcements with attractive yields,” said Huu Phuong.
However, securities firms cautioned that the market remains sensitive to news during this period, implying that short-term downside risks persist in the event of unfavorable developments. Therefore, investors should exercise caution, closely monitor the exchange rate and foreign investor activity, and avoid the temptation to chase stocks at any cost to mitigate risk.
Exchange Rate Stabilizes
