Large cash flows return to boost stock market

By Khanh An
Sun, June 4, 2023 | 9:02 am GMT+7

Vietnam’s stock market recorded positive signals this week as domestic investors splashed the cash to help the VN-Index break from its sideways trajectory to find higher ground.

The Vietnamese stock market starts to rally during this week. Photo by The Investor/Gia Huy.

The Vietnamese stock market starts to rally during this week. Photo by The Investor/Gia Huy.

Banking stocks gained simultaneously on Friday, helping the benchmark index on the Ho Chi Minh Stock Exchange (HoSE) to close the trading week on a positive note. It rose 1.15% to close the day at 1,090.84 points. For the whole week, the index gained 20.08 points, up 2.55% against the previous week.

On Monday, green could be seen across all sectors as the index approached the 1,080-point mark. However, selling pressure increased gradually in the next three sessions, especially the correction of large-cap stocks, which put pressure on the index and halted the gaining streak.

However, increasing demand for banking stocks on Friday helped the index rebound strongly, surpassing the resistance area to move towards the 1,100-point area.

During the week, liquidity on the HoSE reached VND78.2 trillion ($3.33 billion), up 26.7% compared to the previous week. Trading volume increased by 29.4% and was at its highest level since the beginning of the year.

Liquidity on the Hanoi Stock Exchange (HNX) increased by 26.3% to nearly VND9.46 trillion (almost $403 million). Foreign investors continued to be net sellers on the HoSE with almost VND1.18 trillion (over $50.4 million), but were net buyers on the HNX with VND7.58 billion (almost $323,000).

DIG, VNM, and VJC of construction group DIC, Vinamilk, and VietJet Air had the most negative impacts on the VN-Index this week. On the other hand, TCB, MBB, and VCB of lenders Techcombank, MBBank and Vietcombank were the most positive.

Market starts to rally

Saigon-Hanoi Securities JSC (SHS) believes that in the short term, the VN-Index will maintain a strong recovery trend towards the resistance area of 1,100 points or even 1,150 points. This means there is an expectation of a medium-term uptrend if the index surpasses 1,150 points.

If the market fails to form this uptrend, the support level will be in the area of 1,000-1,050 points. "Accumulation has been seen over the past six months. The accumulation base is good enough for a medium-term uptrend ahead. In our opinion, the market has moved from a cautious state to a positive state," SHS said.

The firm’s analysis team noted that in the short term, the market has formed a rising wave and opened up opportunities for surfing. In the medium and long term, the market is preparing for a new uptrend cycle, and if investors want to buy in, they should choose leading stocks with good fundamentals, and stocks with stable growth potential.

From a technical point of view, Vietcombank Securities Company (VCBS) said looking at the daily chart, the two indicators MACD (moving average convergence divergence) and RSI (relative strength index) are going up with no sign of the first peak. This means cash is flowing into the market and the VN-Index is likely to move toward the 1.100-point area before there is a stronger correction. However, on the hourly chart, the two indicators were at high levels, so the market will still experience wobbles while rallying.

VCBS said: “We recommend investors continue to hold their proportion of stocks, disbursing only 20-30% of the volume of profitable and available shares in their portfolios. Investors should avoid chasing purchases during strong gaining sessions."

Viet Dragon Securities Corporation (VDSC) forecast that cash flow will continue to support and help the market gradually move to higher-price ranges in the near future, but selling pressure may appear at the resistance area of 1,100-1,125 points. Therefore, investors should continue to hold or exploit short-term opportunities in stocks with good technical signals that are attracting cash flow.

Like VDSC, Saigon Securities Inc. (SSI) believes that getting out of the sideways zone in a narrow band has created a new uptrend for the index with a short-term target of 1,100 points. With the new uptrend, strong cash flow into the market will open more opportunities for investors.

Comments (0)
  • Read More
Vietjet appoints new managing director

Vietjet appoints new managing director

Vietjet Aviation Joint Stock Company (HOSE: VJC) has appointed Nguyen Thanh Son as its new managing director, succeeding Dinh Viet Phuong.

Companies - Tue, July 8, 2025 | 8:10 am GMT+7

First turbine rotor installed at expanded Hoa Binh hydropower plant in northern Vietnam

First turbine rotor installed at expanded Hoa Binh hydropower plant in northern Vietnam

The rotor of the first turbine at the expanded Hoa Binh Hydropower Plant project was successfully installed on Sunday in Phu Tho province, formerly Hoa Binh province, northern Vietnam.

Companies - Tue, July 8, 2025 | 8:07 am GMT+7

Singapore heavily penalizes nine financial institutions for money laundering

Singapore heavily penalizes nine financial institutions for money laundering

The Monetary Authority of Singapore (MAS) has fined nine financial institutions SGD27.45 million ($21.55 million) for breaches related to the 2023 money laundering case involving more than SGD3 billion in assets.

Southeast Asia - Tue, July 8, 2025 | 7:58 am GMT+7

Foreign cash flows push VN-Index past 3-year peak

Foreign cash flows push VN-Index past 3-year peak

With positive sentiment from both domestic and foreign investors, VN-Index on Monday surpassed the 1,400 mark after more than three years. The last time the benchmark index reached this level was on April 19, 2022.

Finance - Tue, July 8, 2025 | 7:28 am GMT+7

Japan's Granja Fujikura eyes developing large-scale, high-tech agriculture in Vietnam

Japan's Granja Fujikura eyes developing large-scale, high-tech agriculture in Vietnam

Granja Fujikura Group wishes to receive favorable conditions in Vietnam to develop large-scale, high-tech agriculture.

Economy - Mon, July 7, 2025 | 11:22 pm GMT+7

Vietnam's Maritime Bank plans 20% stock dividend payout

Vietnam's Maritime Bank plans 20% stock dividend payout

Vietnam Maritime Commercial Joint Stock Bank (MSB) plans to issue up to 520 million shares as stock dividends, equivalent to 20% of its outstanding shares at the record date.

Banking - Mon, July 7, 2025 | 5:30 pm GMT+7

Vietnam's shipping major Vinaship to pay first cash dividends after 14 years

Vietnam's shipping major Vinaship to pay first cash dividends after 14 years

Vinaship, a major shipping firm in Vietnam, plans to pay cash dividends for the first time in the past 14 years, at a total of approximately VND20.4 billion ($779,670).

Companies - Mon, July 7, 2025 | 4:36 pm GMT+7

Vietnam, Brazil eyes joint coffee exchange

Vietnam, Brazil eyes joint coffee exchange

Vietnam and Brazil will sign a food security agreement which includes plans to explore a joint coffee exchange and possibility of building a shared bilateral coffee brand.

Economy - Mon, July 7, 2025 | 4:02 pm GMT+7

Vietnamese property major Hoang Huy’s subsidiary plans new share issuance before HoSE listing

Vietnamese property major Hoang Huy’s subsidiary plans new share issuance before HoSE listing

CRV Real Estate Group JSC, a member of Vietnam's major property developer Hoang Huy Group, has approved a plan to issue an additional 16.81 million shares to existing shareholders at a 40:1 ratio and the price of VND26,000 ($1) per share.

Companies - Mon, July 7, 2025 | 2:29 pm GMT+7

Credit to drive Vietnam’s bank industry earnings in 2025: broker

Credit to drive Vietnam’s bank industry earnings in 2025: broker

The Vietnamese banking industry’s pre-tax profit could grow 18% in 2025 from the pervious year, driven by strong credit expansion, according to the Hanoi-based Vietcombank Securities (VCBS).

Banking - Mon, July 7, 2025 | 11:57 am GMT+7

Central Vietnam hub Danang lures strategic investors for int’l financial center

Central Vietnam hub Danang lures strategic investors for int’l financial center

More than 10 investors have expressed interest in the development of an international financial center in the central city of Danang.

Economy - Mon, July 7, 2025 | 9:56 am GMT+7

FDI firms most optimistic about Q3 business outlook in Vietnam: survey

FDI firms most optimistic about Q3 business outlook in Vietnam: survey

Up to 81% of foreign-invested enterprises in Vietnam forecast improved or stable business conditions in Q3/2025 as compared to Q2, according to a survey by the General Statistics Office (GSO) on business trends among manufacturing and processing companies.

Economy - Mon, July 7, 2025 | 8:46 am GMT+7

Listed Vietnamese companies almost not involved in 'transshipping': Dragon Capital

Listed Vietnamese companies almost not involved in 'transshipping': Dragon Capital

Only about 1.5% of the total revenue of Vietnamese companies listed on the Ho Chi Minh Stock Exchange (HoSE) comes from exports to the U.S., meaning "transshipping" is almost irrelevant, says Dragon Capital, a leading foreign-run asset management firm in Vietnam.

Economy - Sun, July 6, 2025 | 1:39 pm GMT+7

Indonesia maintains lowest debt ratio among G20 members

Indonesia maintains lowest debt ratio among G20 members

Indonesia’s external debt-to-GDP ratio stood at 30.6% in the first quarter of 2025, the lowest among the Group of Twenty (G20) comprising major developed and emerging economies, according to data from the Bank of Indonesia.

Southeast Asia - Sun, July 6, 2025 | 11:27 am GMT+7

Thailand's digital GDP expected to grow 6.2% this year

Thailand's digital GDP expected to grow 6.2% this year

The Digital Economy and Society (DES) Ministry of Thailand expects digital GDP this year to expand by 6.2% year-on-year, despite the potential impact of the U.S.'s reciprocal tariffs.

Southeast Asia - Sun, July 6, 2025 | 10:44 am GMT+7

Healthcare M&As surge in Vietnam on foreign capital inflows

Healthcare M&As surge in Vietnam on foreign capital inflows

Despite a global downturn in healthcare M&A activity, Vietnam’s market has witnessed major deals in the first half of 2025.

Finance - Sun, July 6, 2025 | 10:40 am GMT+7