Market rebounds after Monday dive

Vietnam’s benchmark VN-Index climbed 2.32% to 1,341.34 points on Tuesday with 101 stocks in the green after an eight-month low recorded the day prior.

The increase came as investors hunted large-cap stocks to help the index take back 30.42 points after losing almost 5% on Monday.

Blue chips topped the growth with 27 out of the top 30 stocks. VRE (Vincom Retail) enjoyed the highest at 6.9%, followed by SAB (brewer Sabeco), VPB (VPBank), BVH (Bao Viet Holdings), MBB (Military Bank), POW (PV Power), GAS (PV Gas), and HDB (HDBank).

Trading on the Ho Chi Minh Stock Exchange (HoSE) where the index is based declined marginally to VND21 trillion ($914 million) on Tuesday. Notably, foreign investors were still net buyers for the eighth consecutive session. They were responsible for net buys worth VND1.05 trillion (almost $45.7 million).

The HNX-Index for stocks on the Hanoi Stock Exchange, including small and middle caps, increased by 2.27%. The UPCoM-Index for unlisted public companies upped 1.62%.

Minister of Finance Ho Duc Phoc said on Tuesday that the Vietnamese stock market was undergoing strong corrections due to combined global and domestic impacts. Increasing inflation pressure worldwide has caused major central banks to tighten policies; the U.S. Federal Reserve has raised interest rates after three years. The Russia-Ukraine conflict has hit global economic recovery, while the prices of oil, gas and materials have sharply increased.

Phoc said these issues have affected stock markets across the world, causing many markets to drop sharply. He added that investor sentiment in the Vietnamese market was being shaken as regulators crack down on market manipulation and illegal private issuances of corporate bonds.