VN-Index approaches 1,800-point mark as easing Middle East tensions lift sentiment

Vietnam's benchmark VN-Index edged closer to the 1,800-point threshold on Monday as improving sentiment over easing tensions in the Middle East boosted risk appetite, driving gains in brokerage stocks while oil and Vingroup-related stocks weighed on the market.

Investor confidence improved after signs emerged that the conflict in the Middle East could move toward a peaceful resolution, supporting equities across global markets and encouraging domestic funds to rotate into securities stocks.

Crude oil prices fell 5.27% to around $80 a barrel, reflecting expectations that oil supplies would remain uninterrupted despite earlier concerns over potential disruptions. Asian markets rallied, with South Korea's KOSPI climbing 5.2%, Japan's Nikkei 225 gaining nearly 5% and China's Shanghai Composite rising 1.6%, while major U.S. indexes including the Dow Jones Industrial Average, the S&P 500 and the Nasdaq maintained their upward momentum.

VN-Index traded in a narrow range before closing up 7.66 points, or 0.43%, at 1,799.31. Market breadth remained positive, with 199 advancing stocks on the Ho Chi Minh Stock Exchange (HoSE) outnumbering 94 decliners.

Capital flows shifted from bank stocks, which had supported the benchmark in recent sessions, into brokerage stocks. Banking names including VPBank, Techcombank and Military Bank posted modest gains of around 1% to 1.5%, while Asia Commercial Bank slipped 0.4%.

Brokerage stocks outperformed across the board. On the HoSE, CTS hit its daily limit with a 7% gain, while SSI rose 3.4%, Vietcap Securities (VCI) gained 3.6% and VNDirect (VND) advanced 3.5%. On the Hanoi Stock Exchange, MBS climbed 4.2%, SHS added 3.8% and BVS rose 3.2%.

Trading volumes in the sector remained elevated, suggesting renewed investor interest in brokerage stocks, which are often viewed as a proxy for overall market sentiment.

The Gelex group also attracted strong buying interest, with GEL surging 6.9%, GEX gaining 3.7% and VIX rising 3.2%, placing them among the market's most actively traded stocks.

Oil and Vingroup stocks weigh on benchmark

One of the session's standout performers was Hoa Phat Group, whose shares jumped 5%, making it the best-performing constituent in the VN30 index. Such a sharp gain is relatively uncommon for the steelmaker given its large market capitalization and typically moderate price movements.

More than 30.6 million HPG shares changed hands, while foreign investors were net buyers buying over 7.5 million shares, far exceeding sales of approximately 573,000 shares.

Oil-related stocks, however, came under pressure as weakening crude prices dampened the sector's outlook. Petrolimex (PLX) fell 3.9% and Binh Son Refining and Petrochemical (BSR) declined 5.7%, making energy one of the market's weakest-performing sectors.

Concerns over potential supply disruptions in the Middle East eased considerably, reducing support for oil-linked equities.

Meanwhile, the three major Vingroup-affiliated stocks remained under pressure. Vingroup (VIC) fell 1.5%, Vinhomes (VHM) lost 1.9% and Vincom Retail (VRE) edged down 0.2%, collectively exerting a notable drag on the VN-Index.

Despite the decline, VIC was among the stocks most heavily accumulated by foreign investors, who bought more than 24.3 million shares compared with sales of only about 1.46 million shares.

Foreign investors remained net sellers overall, offloading a net VND523 billion ($19.89 million) across the market. Total foreign sales reached over VND2.93 trillion ($111.56 million), exceeding purchases of around VND2.41 trillion, although overseas funds continued to selectively accumulate stocks such as Vingroup (VIC) and Hoa Phat (HPG).