Banking, securities stocks lead Vietnam market surge

The Vietnamese stock market witnessed an explosive week-ending trading session in terms of score and liquidity on the back of strong rallies by banking and securities stocks.

After hovering around the support zone of about 1,245 points for four consecutive sessions, the VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), gained nearly 20 points with trading value approximating $1 billion in the Friday session.

At the end of the April 8-12 week, the VN-Index had surged 21.49 points, or 1.71%, to 1,276.6. Trading value on the major bourse reached VND94.8 trillion ($3.79 billion), down 25.4% compared to the previous week. Foreign investors continued to be net sellers to the tune of over VND1.16 trillion ($46.33 million) on the HoSE.

CTG of Vietinbank, TCB of Techcombank, and MBB of MBBank had the most positive impacts on the VN-Index, with a combined contribution of more than 6 points. MWG of Mobile World Investment Corp., DGC of Duc Giang Chemicals, and NVL of real estate developer Novaland were the worst performers.

During the week, many banking stocks saw significant price increases and strong liquidity improvements, notably VAB of VietABank (+20%), LBP of LPBank (+14.33%), CTG (+8.13%), and BID of BIDV (+6.37%).

Securities tickers also performed well, with CTS of VietinBank Securities up 12.5%, FTS of FPT Securities up 5.67%, AGR of Agribank Seccurities up 5 .61%, and SHS of Saigon-Hanoi Securities up 5.05%.

Meanwhile, most real estate stocks came under corrective pressure with DRH of DRH Holdings JSC losing 8.33%; HAR of An Duong Thao Dien JSC, 8.15%; FIR of First Real JSC, 6.54%; and NBB of 577 Corp., 4.92%.

However, there were some gainers in this group, including QCG of Quoc Cuong Gia Lai Corp. (+17.07%), NHA of South Hanoi Housing and Urban Development Corp. (+6.45%), DIG of DIC Corp. (+5%), and VHM of Vinhomes (+3.61%).

Broker SHS believed that after the explosive rally at the end of the week, the VN-Index has successfully tested the support zone of around 1,250 points and the accumulation base was good enough to enable it to surpass the strong 1,300-point resistance territory.

“Short-term investors should not put down money when the index approaches this threshold. Medium- and long-term investors should patiently wait for a more stable accumulation process,” it advised.

Another broker, Vietcombank Seccurities (VCBS), held that the VN-Index will soon retest the resistance area of around 1,280-1,290 points. It advised investors to consider buying stocks in groups that show signs of stable recovery and attract good cash flows, like real estate, securities, and banking.