Vietnam’s VNI Rises 1.68% as Midcap Stocks Attract Investors
Vietnam’s VNI rose 1.68% on November 10 as matched trading value on the two listed exchanges increased 31% from the previous day and foreign investors bought a net VND 475 billion. Midcap stocks were active, though the author said trading value would need to keep rising to provide stronger evidence that large investors are returning.
On November 10, Vietnam’s VNI rose 1.68%, closing at its highest level of the day. About one-third of stocks that traded closed up at least 1%, and advancing stocks outnumbered declining stocks by 2.35 to 1. The value of matched stock trades on the two listed exchanges exceeded VND 14 trillion, excluding negotiated trades, up 31% from November 9. Foreign investors bought a net VND 475 billion, their second net buying session in the past three trading days.
Illustration of Vietnam’s stock market.（VietVance）
Capital continued to flow into midcap stocks, with 34.3% of them gaining more than 2%. Seven VN30 constituents rose more than 2%, but the group accounted for only 49% of the value of matched stock trades on the Ho Chi Minh Stock Exchange. By volume, midcap stocks accounted for 71% of all matched stock trades on the exchange. VIX, NVL, KDH, VND, PNJ, DXG and CII each recorded trading value above VND 200 billion.
VIC rose 3.24% and VHM gained 2.65%. As gains spread to more stocks, the two stocks’ contribution to the VNI’s rise fell to slightly more than half. The VNMidcap index approached its short-term high of October 23, while the VNI remained about 1.75% below its corresponding high.
The author said buyers were more willing to raise their bids that day, but there was still insufficient evidence of a clear return of large-scale capital. In the author’s view, a more reliable signal would be matched trading value above VND 15 trillion per session on the two exchanges, excluding negotiated trades, sustained for three to five trading days. Until then, the market may remain uneven.
Source: VietVance
