Yesterday’s pessimistic performance led to a negative start for the market this morning, with the VN-Index dipping as low as 1197.99 points, and the number of declining stocks far outpacing those that gained. However, a surprising turnaround took place as strong buying pressure emerged, driving a series of gains across the board. Turnover on the two exchanges has increased by nearly 90% compared to yesterday morning, despite persistent foreign net selling in the billions of VND.
The early decline in this session tested the market’s confidence, as negative trading and the erasure of Monday’s gains led to a resurgence of pessimistic sentiment. About 20 minutes after the VN-Index fell below the 1200-point threshold, a multitude of stocks hit their intraday lows.
The remainder of the session witnessed an impressive recovery. The VN-Index, which had been down nearly 7.2 points, ended the morning up 9.62 points (+0.8%). The advance-decline ratio also flipped to 236 gainers to 131 losers, indicating that hundreds of stocks successfully rebounded above the reference level.
Unsurprisingly, blue-chip stocks led this rebound. The VN30-Index is up 0.71% with 25 gainers and only 3 losers. When the market was at its worst, no stocks in this group were in positive territory, and only MBB and SHB held steady. Now, 11 stocks in the VN30 basket are up over 1%, including heavyweights like BID, up 1.79%; VHM, up 2.37%; HPG, up 1.77%; and VPB, up 1.08%. The sole loser among the top 10 stocks by market cap is FPT, down 0.77%. Even FPT has recovered significantly, climbing 1.82% from its intraday low. BVH and VJC are the other two stocks in the red, but they, too, have recouped some losses.
As many blue chips experienced early declines, price movements today were quite volatile for most stocks. This resulted in substantial profits for those who successfully timed the bottom. In the VN30 basket alone, 11 stocks witnessed reversals of more than 2% within just a few minutes.
Expanding our view to the entire HoSE, we find that 45.5% of stocks that traded this morning witnessed recoveries of 2% or more from their lows. This implies that bottom-fishing investors could have reaped even higher profits than what the closing prices suggest. If we consider a narrower recovery threshold of 1%, this percentage climbs to 68.5%.
Among the 236 stocks in the green on the VN-Index, 122 posted gains of more than 1% against the reference level. This group accounted for 58.4% of the total matched orders value on the exchange, underscoring the breadth and strength of the buying pressure. Fifteen stocks in this group boasted turnovers exceeding 100 billion VND, mainly comprising securities and real estate names such as DXG, VHM, NVL, PDR, DIG, HCM, SSI, VCI, and VIX. The securities sector, in particular, stood out, with the vast majority of stocks in the green, only 3 in the red (ABW, BMS, APG), and nearly a dozen surging over 2%. The banking sector also fared well, with all but NAB in positive territory and 7 stocks gaining over 1%. BID, VCB, MBB, VPB, and STB were among the top 10 stocks contributing the most to the index’s gains.
Most of the remaining stocks in the red this morning either posted slight declines or witnessed low turnover. Among the 131 losers, only 39 fell by more than 1%, and among those, only VTP and CMG recorded turnovers above 10 billion VND. In fact, the total trading value of these 131 stocks accounted for just 16.7% of the HoSE’s turnover.
While foreign investors maintained their net selling stance, their impact on the market was notably diminished amid the joyous recovery. Their net selling value on HoSE climbed to 1,638.3 billion VND, the highest in 14 sessions, but their buying value also increased to 620.1 billion VND, resulting in a net sell figure of 1,018 billion VND. Stocks that witnessed substantial foreign outflows included FPT (-439.2 billion VND), MSB (-183.4 billion VND), VHM (-98.6 billion VND), HPG (-65.1 billion VND), MWG (-45.9 billion VND), and SSI (-32.1 billion VND). Nonetheless, these heavily sold stocks displayed remarkable resilience.
The VN-Index’s strong recovery from the 1200-point level once again highlights the presence of bottom-fishing funds. Concerns about exchange rates and persistent foreign net selling remain, but when selling pressure eases, and bottom-fishing efforts prove fruitful, the market tends to become less sensitive to negative news.
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