The VN-Index continued to increase sharply on August 20 for the third consecutive trading session with cash inflow stronger than the previous session. Some blue chips, including Vin-family shares and bank shares, were on high demand.

The stock market closed on August 20 with the VN-Index increasing by 10.93 points, or 0.87 percent, to 1,272.55 points. The HNX-Index increased by 0.55 percent, and UpCom Index 0.41 percent. The liquidity reached VND19 trillion on HOSE (HCM City Stock Exchange), VND1.3 trillion on HNX and VND676 billion on UpCom.

Analysts said price increases were mostly seen in real estate shares with some shares hitting the ceiling level and others increasing sharply.

Vin-family shares were among them. Vingroup (VIC) share prices increased by VND550 per share to VND41,700 per share, Vinhomes (VHM) by VND800 to VND39,400 per share, and Vincom Retail (VRE) VND450 to VND18,750 per share.

While Phat Dat Real Estate (PDR) share price hit the ceiling level of VND20,450 per share, Dat Xanh (DXG) price increased by VND1,000 to VND15,600 per share, Hai Phat Investment (HPX) by VND370 to VND5,740 per share.

Novaland (NLV) owned by billionaire Bui Thanh Nhon also saw the price increase by VND600 to VND12,700 per share, DIC Corporation (DIG) VND1,350 to VND25,050, and SaiGon Real Estate (SGR) VND2,000 to VND30,900 per share.

The stock exchanges were lit green on August 20.

Finance and bank shares had a prosperous trading session on that day. VNDirect (VND) price increased by VND600 to VND15,550 per share, BIDV (BID) share price increased by VND1,250 to VND49,150 per share, and VietinBank (CTG) VND550 to VND33,200.

Foreign investors’ net purchase was one of the positive signs of the trading session. The net purchase reached VND330 billion. Foreign investors collected VCB (Vietcombank) shares, FPT, The Gioi Di Dong (MWG), Novaland, and Phu My Fertilizer (DPM).

The investors focused on the shares of banks, securities companies, retailers, technology firms and oil and gas firms.

The stock indexes increased in the context of sharp increases in the world’s stock market, including increase for the eighth consecutive trading session in the US; the dong/dollar exchange rate cooling; and the land fever in some areas, including suburban districts of Hanoi. 

The dollar price decreased sharply by late August 20 to VND25,080 per dollar (Vietcombank) compared with the VND25,250 per dollar on August 16 and VND25,485 in late April. The greenback price in the international market also decreased sharply, with DXY index to 101.84 points from 102.9 points on August 16 and 106.25 points in late April.

The official exchange rate announced by the State Bank of Vietnam (SBV) on August 20 was VND24,251 per dollar (- VND10).

In the interbank market, the deposit interest rate increase has stopped. Some commercial banks have slashed their deposit interest rates.

Prospects for real estate shares

According to VNDirect Securities, real estate shares were among the most discouraging stocks in the first half 2024 as they fell down despite the positive changes in policies.

The cash flow did not head for real estate shares, so the shares had to undergo a correction campaign through many months. Also, real estate firms’ business performance was not that good in the first half.

However, the dark period is over and cash has begun flowing into real estate shares for bottom fishing. The other reason for investors to inject money into shares is the hope for better business results in the second half of the year. It is now the time for realtors to accelerate the deliveries to clients. 

Vinhomes is delivering products in a series of projects, including Ocean Park 3, Sky Park and Golden Avenue. Nam Long has Akari and Southgate and Khang Dien has The Privia.

According to VNDirect, it still needs more time to see support policies and real estate-related laws impacts on securities investors’ psychology.

Because of new laws, in the immediate time, there will be mixed effects on the real estate market in short term.

Some localities have begun applying their new land price frameworks, which is believed to put financial pressure on enterprises. 

VNDirect Securities believes that one should not expect sharp increases in real estate shares in the second half of the year. The recovery will be clearer when enterprises’ situations improve.

Manh Ha