STOCK MARKET SURGES, VN-INDEX EDGES CLOSER TO THE 1,300-POINT MILESTONE

The Vietnamese stock market enjoyed a week of robust performance, with the VN-Index recording three consecutive weeks of recovery and posting substantial gains from its support level of 1,200 points.

Despite facing corrections during the first three sessions of the week, the index rebounded strongly in the final two sessions, supported by improved liquidity.

By the end of the week, the VN-Index rose by 1.57 per cent to 1,270.14 points, while the HNX-Index climbed 1.9 per cent to 228.93 points.

Liquidity surged, with average daily matched orders reaching a 20-week high. The HoSE recorded an average daily trading volume of 628 million shares, up nearly 36 per cent from the previous week, and an average daily trading value of VNĐ16.03 trillion (US$693.7 million), representing a 32 per cent increase.

Foreign investors resumed net selling during the first week of December, offloading more than VNĐ400 billion worth of shares. The most sold stocks included Mobile World Investment Corporation (MWG) and Vincom Retail (VRE).

This selling trend was linked to Việt Nam's market upgrade procession. According to Vietcap Securities, FTSE Russell welcomed Việt Nam's removal of the pre-trade deposit requirement in November, but would continue gathering feedback to assess its impact. A potential upgrade to Emerging Market status is anticipated during its semi-annual review in September 2025.

Head of Analysis at the Sài Gòn-Hà Nội Securities (SHS) Phan Tấn Nhật observed that the VN-Index is recovering above its support level near 1,255 points, which corresponds to its 2023 peak and the 200-day moving average. He forecast the index to remain within a consolidation range of 1,200 to 1,300 points in the medium term, setting the stage for a potential breakout above 1,300 points after an extended accumulation phase.

"The medium-term trend indicates a promising move beyond the 1,300-point mark following a prolonged consolidation since the beginning of the year," Nhật noted.

He advised investors to maintain a balanced portfolio, selectively allocating capital to fundamentally strong stocks with growth potential. Nhật also warned against chasing price increases driven by market sentiment and urged careful stock selection as the VN-Index approaches the resistance range of 1,280 to 1,300 points.

Vietcombank Securities (VCBS) analysts expressed optimism about the market's short-term outlook in their weekly report. They suggested that the VN-Index may require a few consolidation sessions before resuming its upward momentum toward the 1,300-point resistance level.

VCBS experts recommended taking profits on stocks that have met short-term targets to secure gains. For higher-risk investors, they are advised to monitor pullbacks for opportunities to invest in stable, up-trending stocks attracting capital inflows.

Source: VNS