The market witnessed a strong surge right after the opening bell this morning, with the VN-Index climbing towards the March peak. However, this momentum was solely driven by large-cap stocks, and as soon as they showed signs of weakness, the index gave back almost all its gains, ending the session with a meager increase of less than 1 point.
The VN-Index touched an intraday high of 1331.6 points, just shy of the March peak of 1336.26 points, with the absolute peak being 1342.91 points. While the index revisited the old peak, the momentum proved unstable and short-lived.
The influence of large-cap stocks was evident in this brief rally. VIC and VHM, for instance, soared to the maximum allowed limit of 6.99% and 7%, respectively, in a matter of minutes. The previous day also saw these two stocks rising in tandem. VCB, during the first 40 minutes, rose by 1.4% from its reference price; BID climbed by 1.8%, CTG by 2.28%, TCB by 1.45%, and VPL by 1.81%. Nonetheless, this excitement was short-lived, and as the large-cap stocks lost steam, the VN-Index followed suit, plunging rapidly. By the end of the morning session, the index managed to stay in positive territory with a meager gain of 0.98 points, even dipping into the red at one point.
This session’s rollercoaster ride resulted in a significant “bull trap” for numerous stocks in the VN30 basket: VIC, for instance, ended the day 0.22% below its reference price, marking a steep decline of 6.74% from its intraday peak. VHM, despite finishing 5.25% higher, still experienced a pullback of 1.63%. VCB erased its gains, closing at its reference price. BID tumbled 2.04%, ultimately posting a modest gain of 0.28%. CTG witnessed a similar fate, shedding 1.98% to end the day with a marginal increase of 0.25%. FPT, too, witnessed a sharp reversal, erasing 2% from its peak to close 1.34% lower… In total, 7 out of the 30 blue-chip stocks witnessed reversals of 2% or more, with an additional 17 stocks experiencing reversals ranging from 1% to just under 2%.
This explains why the VN-Index plunged so rapidly after a strong start. The index’s movement is heavily reliant on these large-cap stocks, particularly VIC, VHM, VCB, BID, CTG, and TCB, which are among the top 10 in terms of market capitalization. VIC and VHM, in particular, have been on a tear in recent days. The VN30-Index managed to eke out a small gain of 0.35%, with 11 stocks advancing and 14 declining. Aside from VHM, STB (+5.7%), VPB (+1.65%), and MSN (+0.96%) were among the notable gainers.
The broader market failed to fare any better. The Midcap index lost 0.51%, while the Smallcap index declined by 0.66%. The overall market breadth for the VN-Index was unfavorable, with 92 gainers and 208 losers. At around 9:40 am, when the index was up nearly 13 points, the breadth was more balanced, with 151 gainers and 100 losers, but by 9:55 am, it had shifted to 127 gainers and 128 losers, despite the index still being up by almost 13 points. This dynamic underscores the influence of the large-cap stocks. As they showed signs of weakness, the red tide swept across the market, resulting in substantial losses.
Of the 208 stocks in the red on the VN-Index, a staggering 120 stocks declined by more than 1%. This stands in stark contrast to the index’s meager gain of 0.98 points. Investors’ portfolios are taking a hit, with individual stock performances outweighing the index’s movement. VHM single-handedly propped up the VN-Index and VN30-Index, contributing 3.2 points and 4.7 points, respectively. In other words, VHM was solely responsible for keeping these indices in positive territory. Notable decliners with substantial volume included BCG, CTD, VPL, TV2, GEE, YEG, VSC, CMG, ORS, and GMD…
Among the gainers, aside from VHM, STB and VPB stood out with their high trading volumes. STB set a new 18-session record, with a turnover of over 1,294 billion VND in the morning alone. VPB also witnessed robust activity, with a turnover of 864.3 billion VND. GEX, EIB, NVL, HVN, and CII were other stocks that traded in the hundreds of billions and posted gains of over 1%.
Foreign investors were net buyers on the HoSE, with a net purchase of 311 billion VND, largely driven by the FUEVFVND fund certificate, which accounted for 323 billion VND. STB also witnessed strong net buying of 308.7 billion VND, with foreign purchases accounting for approximately 25% of the total trading volume. VHM (+96.8 billion VND), HVN (+54 billion VND), MBB (+39.2 billion VND), NVL (+36.8 billion VND), and GEX (+32.2 billion VND) were among the other notable net bought stocks, most of which posted gains. On the other hand, FPT (-138.7 billion VND), VIC (-88.6 billion VND), VRE (-44.4 billion VND), SSI (-29.4 billion VND), and ACB (-28.4 billion VND) were among the top net sold stocks.
The fact that the indices are hovering near their peaks due to a handful of large-cap stocks holds little significance when the broader market breadth indicates a lack of enthusiasm among investors. Moreover, unless one’s portfolio heavily consists of these large-cap stocks, most investors are likely still in negative territory or incurring losses.
Why Do People Still Choose to Deposit Money in Banks Even Though Other Investment Channels Are Active?
In just the first two months of the year, over 301 trillion VND in savings deposits from residents flowed into the banking system, despite rising gold prices and a booming stock market.
The Tax Saga: VN-Index Recovers, But Stocks Still Stranded
After almost two months since the market took a hit with the US imposing tariffs on multiple countries, with a significant 46% imposed on Vietnam, the VN-Index has recovered and returned to its previous peak. However, numerous stocks continue to struggle, with the exception of a few standouts from the Vin family.
The Market Pulse: Will Profit-Taking Pressure Emerge?
The VN-Index witnessed a negative turn with a significant surge in trading volume above the 20-day average. This indicates profit-taking pressure as the index retests the old peak from March 2025 (around the 1,320-1,340 point range), triggering market jitters. If selling pressure persists in upcoming sessions, the correction risk will escalate. The Stochastic Oscillator, a key indicator, has been in a downward trajectory after signaling a sell-off in the overbought zone. Investors are advised to exercise caution if the indicator falls out of this range in the near term.
“Markets Soaring High: Vietstock Daily Overview for May 21, 2025”
The VN-Index surged, dismissing the previous two sessions’ losses with the emergence of a White Marubozu candlestick pattern. This reflects a highly optimistic sentiment among investors. However, trading volume needs to show a marked improvement for the index to sustain its upward trajectory. If the VN-Index firmly holds above the current level, it may have the potential to revisit the old peak of March 2025 (around the 1,320-1,340 range). Notably, the MACD indicator has maintained a buy signal since late April 2025, boding well for the short-term outlook if this status quo persists.
Market Pulse May 24: Extended See-Saw Movement, Foreigners Resume Net Selling
The market closed with the VN-Index up 0.62 points (+0.05%), reaching 1,314.46; while the HNX-Index fell 0.47 points (-0.22%) to 216.32. The market breadth was relatively balanced, with 374 gainers and 371 losers. Similarly, the VN30 basket saw a tight contest between bulls and bears, resulting in 15 gainers, 12 losers, and 3 unchanged stocks.
