Vietnam's VN-Index falls as property slump outweighs broad market gains

Vietnam’s benchmark stock index started the week on a negative note, as a sharp downturn in heavyweight real estate shares overshadowed gains across most other sectors.

The VN-Index on the Hochiminh Stock Exchange (HoSE) fell nearly 17 points, or 0.9%, to close Monday's session at 1,854.97, reversing a 0.47% gain from Friday. Despite the headline decline, market breadth was positive, with 413 stocks advancing compared to 298 decliners. The VN30 basket, which tracks the 30 largest stocks by market capitalization and liquidity, also outperformed the main index, with 21 of its constituents ending higher.

Trading liquidity on the HoSE improved from the previous session. Total turnover reached nearly 600 million shares worth VNĐ17.4 trillion (US$662 million), an increase of 12% in volume and 8% in value compared to Friday.

Sector performance was largely positive, with eight of the 11 industry groups tracked by Vietstock finishing in positive territory. The energy sector led the advance with a 1.17% gain, followed by financials at 1.15%, industrials at 0.9%, and materials at 0.77%.

However, these gains were insufficient to offset a steep 3.73% drop in the property sector index. The decline was driven by significant losses in the Vingroup ecosystem, with Vingroup JSC (VIC) falling 4.7%, Vinhomes JSC (VHM) down 3.7%, and Vincom Retail JSC (VRE) losing 2.7%.

In contrast, banking stocks provided the market's main support, with lenders accounting for eight of the top 10 positive contributors to the VN-Index. LienVietPostBank (LPB) was the top performer, rising 3.2%. It was followed by BIDV (BID), Military Bank (MBB), VPBank (VPB), Techcombank (TCB), Vietcombank (VCB), Vietinbank (CTG), and Saigon Treasure Bank (STB), which all posted gains of approximately 1%.

On the Hanoi Stock Exchange (HNX), the HNX-Index bucked the trend, inching up 0.05% to 317.99, after having decreased 0.5% on Friday. Liquidity on the northern bourse also increased, with nearly 59 million shares worth VNĐ977 billion changing hands, representing a 28% rise in both volume and value from the prior session.

Analysts at Bao Viet Securities (BVSC) commented that the market remains range-bound, with subdued liquidity indicating investor caution after a recent rally. They noted that large-cap stocks were helping to keep the VN-Index above its 50-day moving average amid continued sector divergence. BVSC anticipates the index will enter a short-term consolidation phase and trade within a narrow range before attempting to test the key resistance level around 1,900 points.

Foreign investors continued their selling streak on the main bourse, offloading a net VNĐ787.5 billion on HoSE. The most heavily sold stocks were Vinhomes (VHM), Vingroup (VIC), FPT Corporation (FPT), and Military Bank (MBB). On the HNX, however, they were net buyers of VNĐ11.5 billion, focusing on PetroVietnam Technical Services Corporation (PVS), TNG Investment and Trading JSC (TNG), IDICO Corporation (IDC), and Bao Viet Securities JSC (BVS).