Vietnam Daily Market Recap August 25

Stocks extend two-day downturn

The VN-Index opened higher on Monday but quickly declined to the negative territory, traded in the red throughout the session and closed down 1.9% at 1,614, after falling 2.5% on Friday. Market liquidity declined, with total trading value decreasing 32.9% compared to the previous session to VND41.8tn (USD1.6bn). The HNX Index followed a similar pattern as the VN-Index, plunging 2.2% to close at 266.6.

Most sectors declined today, led by Banks (-4.4%), Oil & Gas (-3.9%) and Chemicals (-2.4%). In contrast, Insurance (+1.2%), Real Estate (+1.0%) and Automobiles and Parts (+0.6%) increased today.

USD/VND rate declined by VND7 on August 25 after the State Bank of Vietnam (SBV) announced a new measure to stabilize the market. The SBV will sell foreign currency through 180-day forward contracts with a cancellation option on August 25-2, at a price of VND26,550 per USD, to credit institutions with negative foreign currency positions. The move signals the SBV’s readiness to intervene, thereby reducing expectations of further exchange rate increases and helping to stabilize market psychology.

Top laggards today included VPB (-6.8%), BID (-5.2%) and TCB (-3.7%), while top performers included VIC (+5.6%), SSI (+2.5%) and GAS (+1.0%).

Foreign investors net sold today with a total value of VND1.8bn (USD67.5mn), marking the 13th consecutive session of foreign investor net selling. Selling pressure was focused on HPG (VND586bn, USD22.5mn), VPB (VND432bn, USD16.6mn) and STB (VND241bn, USD9.3mn). On the other hand, strong net buying was seen in MBB (VND292bn, USD11.2mn), SHB (VND88.8bn, USD3.2mn) and SSI (VND81.6bn, USD3.1mn).

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