Market Rally Driven by Major Stocks and Positive Fundamentals
The market’s breadth reflected strong buying interest, with approximately 340 stocks advancing compared to a much smaller number of decliners. This marked a significant shift in investor sentiment, as the positive trend extended across multiple sectors. However, trading volume remained subdued, indicating that the rally was primarily driven by institutional investors rather than retail participation.
Among the key contributors to the index’s gains, VIC and VHM stood out. VIC added around 11.2 points, while VHM, the largest stock in the market, surged nearly 7%, becoming a focal point for traders. VHM’s strong performance coincided with its announcement of ambitious financial targets for 2026, including a projected revenue of 250 trillion VND and net profit of 50 trillion VND, representing a 63% and 15% increase, respectively, compared to the previous year. These figures have positioned VHM as a potential leader in the market, attracting both domestic and international investors.
Expert Insights Highlight Market Resilience and Global Influences
Meanwhile, Huynh Anh Huy, CFA and head of industry analysis at Kafi Securities, emphasized the role of domestic policy support in stabilizing investor sentiment. He highlighted that measures aimed at maintaining currency stability and financial market resilience have created a more favorable environment for long-term investments. Additionally, the recovery of major global markets, including the U.S., has reinforced positive expectations for the Vietnamese market.
Despite the bullish momentum, liquidity remains a key challenge. The market’s trading volume is still below the three-month average, suggesting that institutional investors are the primary participants. This dynamic has led to a selective approach, with investors favoring stocks that offer attractive valuations and strong fundamentals. While the market has shown resilience, the absence of a broad-based rally indicates that the recovery is still in early stages.
Regional Market Movements and Global Market Recovery
Hong Kong’s Hang Seng index rose 1.71%, supported by gains in basic materials and energy stocks, while China’s CSI 300 index gained 1.47%. These movements highlight the interconnectedness of global markets, where positive developments in one region often spill over to others. The U.S. market also saw a strong rebound on March 31, with the Dow Jones Industrial Average rising 2.49%, the S&P 500 up 2.91%, and the Nasdaq Composite surging 3.83%. This widespread recovery has created a more optimistic environment for investors worldwide.
The positive momentum in global markets has indirectly supported the Vietnamese stock market, as investors seek opportunities in emerging economies. However, analysts caution that while the recovery is promising, the market remains vulnerable to external shocks. The resilience of the Vietnamese market, combined with its exposure to global trends, positions it well for continued growth. Nevertheless, sustained improvements in liquidity and broader participation will be critical for the market to solidify its gains.
CONCLUSION
The Vietnamese stock market’s recent performance underscores a combination of domestic fundamentals, global market trends, and supportive policy measures. The VN-Index’s rally, driven by major stocks like VIC and VHM, reflects investor confidence in the country’s economic prospects. Expert analysis highlights the importance of both domestic stability and international market recovery in shaping the market’s trajectory. While regional and global markets have shown positive momentum, the Vietnamese market’s ability to sustain this growth will depend on continued improvements in liquidity and broader participation. As the market navigates this phase of recovery, the interplay between local and global factors will remain a key determinant of its future direction.
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