Vietnam's VN-Index Nears All-Time High Amid Thin Volume, Foreign Outflows

Vietnam’s benchmark VN-Index extended its rally for a third consecutive session on Wednesday, closing near the 1,880-point mark and tightening its gap with the historical peak to less than 3 per cent. The advance defied widespread analyst expectations of a market cool-down as it approaches its all-time high of 1,927 points, though the gains were built on narrowing participation and a sharp drop in liquidity.

Contrary to forecasts that profit-taking pressure would intensify, the index held its ground in positive territory for most of the session. It briefly moved closer to the 1,900-point psychological barrier before late selling pressure trimmed the advance to a nine-point gain, closing at 1,878 points. Liquidity on the Hochiminh Stock Exchange (HoSE) contracted significantly, dropping to approximately VNĐ18.2 trillion, a decline of roughly 40 per cent from the previous session. The market's breadth remained negative, with 178 stocks declining versus 113 advancing, underscoring the narrow nature of the rally.

The concentration of buying in blue-chips was evident as the VN30-Index, which tracks HoSE’s 30 biggest stocks, rose more strongly than the broader market. The large-cap index added over 15 points, pushing it beyond the 2,000-point threshold. LPBank (LPB) posted the session's second-strongest gain. While it did not hit the ceiling price as in the prior session, the banking stock still surged more than 5.5 per cent to close at VNĐ55,500 per share, its highest price to date.

The Vingroup-related pair of Vingroup (VIC) and Vinhomes (VHM) continued their upward trajectory and remained key pillars for the benchmark. Their price paths, however, diverged late in the session. VIC narrowed a substantial intraday gain of more than 5 per cent to finish up just 0.66 per cent, while VHM ended the day higher by 2.31 per cent. VHM, VIC, and LPB were the three best contributors, adding a combined 7.66 points to the VN-Index. The benchmark also received support from other large-cap names such as Techcombank (TCB), Mobile World Investment Corporation (MWG), which gained nearly 2.4 per cent, Techcom Securities (TCX), and Petrovietnam Refining And Petrochemical Corporation (BSR).

In contrast with HoSE, the HNX-Index on the Hanoi Stock Exchange (HNX) fell 8.14 points to close at 318.24 points. Meanwhile, foreign investors reversed course after a single session of net buying, returning to a net selling position. They offloaded a net of more than VNĐ611 billion on HoSE and VNĐ5.82 billion on HNX.

In the near-term, analysts at ACB Securities noted that the market could face stronger fluctuations. They anticipate that as the index reaches the resistance zone of 1,880–1,890 points, profit-taking pressure may increase and potentially trigger a downward reversal.