The VN-Index continued its upward trajectory on June 3rd, rebounding from the previous week’s tremors. Strong buying pressure pushed the index past the 1,345-point mark, its highest level in 13 months. The spotlight fell on securities stocks, which unexpectedly attracted significant attention after a prolonged period of stagnation.
Notably, APG and VND witnessed explosive trading activity, surging to the maximum allowable daily limit with no sellers. APG saw a buying queue of over 600,000 units at the ceiling price, while nearly 6 million VND shares were waiting to be purchased at the same level. Other securities stocks, including MBS, SHS, HAC, BVS, HCM, PSI, and HBC, also closed with impressive gains of more than 4%.
The trading volume in this sector was exceptionally robust. VND, in particular, experienced a sudden spike in liquidity, with over 62 million shares changing hands—the highest in over three months. VIX, SSI, and SHS also ranked among the top stocks in terms of market-wide liquidity.
Foreign investors unexpectedly snapped up these securities stocks, with APG standing out due to a large block trade. As a result, it recorded a net buying value of over VND 460 billion. Other stocks that benefited from foreign investment inflows included VND (VND 140 billion), VCI (VND 54 billion), and HCM (VND 49 billion), among others.
Potential investment opportunities for those seeking undervalued sectors
The surge in securities stocks came after a series of lackluster trading sessions, even as the VN-Index consistently broke through resistance levels. This contrasts with the typical trend, where securities stocks often lead and drive market rallies. The lack of short-term supportive news has been a contributing factor to the sector’s underperformance.
According to Mr. Ho Huu Tuan Hieu, Investment Strategy Expert at SSI Research, in the short term, the securities sector lacks clear supportive information, and recent quarterly financial results have not been particularly outstanding. However, the period from July to August could bring more positive news, providing investors with an opportunity to reconsider their positions in this sector.
In reality, the slow pace of development has kept the valuation of securities stocks from becoming too expensive. According to the latest report by VNDirect, securities stocks are currently trading at attractive valuations, with P/E and P/B ratios significantly discounted compared to their five-year historical averages. This presents potential investment opportunities for those seeking undervalued sectors.
VNDirect suggests that after the strong recovery in May, the market’s upside potential in June may be limited as the VN-Index approaches a critical resistance level. This juncture provides an opportunity for investors to restructure their portfolios, taking profits from overheated stocks and shifting their focus to sectors that remain attractively valued and have not fully recovered to pre-April 2nd levels, such as securities. Positive factors could emerge in the coming period.
Aside from valuations, the securities sector has its own narrative tied to the market upgrade process. The launch of the KRX system in early May 2025 ushered in an era of advanced trading solutions. This development will facilitate the creation of new products and services, making it easier for foreign investors to participate in the market and supporting the market upgrade process.
VNDirect projects that FTSE will officially upgrade Vietnam’s market status to a secondary emerging market, while MSCI is expected to meet the remaining criteria for an upgrade in 2026. Consequently, Vietnam will be classified as an emerging market by MSCI in its June 2027 review.
According to VNDirect, the downward trend of the DXY index and the potential market upgrade in September will positively influence the Vietnamese stock market this year. These factors could boost investor sentiment and attract new capital inflows, leading to a revaluation of the market at higher levels.
From another perspective, the development of the spot and derivative securities markets, along with the anticipated growth of the digital asset market, has captured investors’ interest. The government has been proactive in directing the research and pilot implementation of a digital asset exchange, demonstrating its commitment to staying abreast of trends and creating a controlled legal environment for this emerging market. This supportive factor significantly bolsters the growth prospects of securities firms.
