Vingroup stocks hit ceiling prices as VN-Index stages sharp rebound

Vietnam's stock market staged a powerful recovery on October 21 after several consecutive sessions of losses, as buying activity surged in large-cap stocks and spread across multiple sectors, pushing the VN-Index back above the 1,700-point threshold.

The benchmark index closed 46.7 points higher, a gain of 2.76%, at 1,738.67 points.

It was the index's strongest daily increase in approximately three months, making Vietnam the second-best-performing stock market in Asia during the session, behind South Korea.

Vingroup-related stocks provided the biggest boost.

Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE) all surged to their daily upper price limits, closing at VND223,600, VND61,800 and VND24,950 per share, respectively.

Meanwhile, Vinpearl (VPL) gained VND3,000 to reach VND83,500 per share.

The rally in these stocks not only contributed substantially to the benchmark index's gains but also improved market sentiment, encouraging investors to return.

According to Forbes' real-time billionaire rankings on October 21, the estimated net worth of Pham Nhat Vuong, chairman of Vingroup, increased by $2.3 billion to $34.8 billion.

The increase placed him 67th among the world's richest individuals.

His wife, Pham Thu Huong, also saw her estimated fortune rise by $287 million to $3.9 billion.

Gains extended to other property stocks, including BCE, DXS, NHA, NLG, HDC, DIG, PDR, VPI and HDG.

Several stocks, including DXS and NLG, posted particularly strong advances, while GEE in the energy sector and VSC in transportation approached their daily upper price limits.

Securities companies also performed well, with SSI, VND and VIX gaining ground amid positive earnings announcements from several businesses.

Banking stocks attracted substantial buying interest, further strengthening the market recovery.

Trading liquidity was another notable highlight.

The total value of transactions on the Ho Chi Minh Stock Exchange (HoSE) reached approximately VND18 trillion ($684 million), up 60% from the previous session.

The increase suggests that bargain-hunting activity intensified following a period of heavy selling, during which the VN-Index had briefly fallen below 1,700 points.

However, the recovery was far from universal.

Kosy's KOS shares continued their decline, hitting the daily lower price limit for the 23rd consecutive session and falling to VND5,820 per share.

Sell orders at the floor price exceeded 97 million shares.

Shares of Phu Nhuan Jewelry Joint Stock Company (PNJ) also reversed course, declining 2.78% to VND19,200 per share after reaching the daily upper price limit in the preceding session.

Investors return to banking, securities and real estate stocks

The VN-Index's sharp advance reflected a combination of gains in heavyweight stocks and bargain-hunting across several sectors.

In terms of trading activity, however, banking and securities stocks remained among the strongest magnets for investor capital.

VIX led the market in matched trading volume, with nearly 52 million shares changing hands.

It was followed by SHB with nearly 45 million shares, SSI with almost 32 million and TPB with approximately 27 million.

Steelmaker Hoa Phat Group (HPG) recorded trading volume exceeding 26 million shares, while property developers DXG and NVL saw nearly 24.6 million and more than 24 million shares traded, respectively.

These figures suggest that investors were not focusing exclusively on heavyweight stocks capable of moving the benchmark index.

They were also seeking opportunities in highly liquid companies, particularly in the banking and securities sectors.

Among banks, TCB, MBB and SHB attracted significant buying from foreign investors.

The development was especially notable after 20 consecutive sessions of net foreign selling.

On October 21, foreign investors returned to net buying, purchasing approximately VND200 billion ($7.6 million) more in shares than they sold.

The reversal helped improve overall market sentiment.

Although the net buying volume was not substantial enough to confirm a lasting change in foreign investor behaviour, it provided welcome support after the market's recent correction.

In real estate, buying interest spread from Vingroup-related stocks to companies whose shares had previously suffered steep declines, including DIG, PDR, NLG, HDC and DXG.

Nevertheless, the sector remained divided, as reflected in the continued weakness of KOS and several other stocks.

This suggests that bargain hunters were selectively targeting opportunities rather than buying indiscriminately across the entire property sector.

Expectations of lower interest rates also supported the market.

Following instructions from the State Bank of Vietnam, several commercial banks reduced both deposit and lending rates.

If sustained, this trend could lower financing costs for businesses, support production and commercial activity, and improve prospects for the property sector.

Third-quarter earnings results and corporate profit expectations were also influencing investment decisions.

Securities companies could benefit from stronger market liquidity, while banking stocks continued to attract attention because of their central role in the economy and appeal to foreign investors.

According to Yuanta Securities Vietnam, the rebound began as selling pressure weakened and the market showed signs of absorbing supply carried over from the previous session.

Several securities firms also expected a technical recovery after the relative strength index (RSI), a widely used momentum indicator, fell deep into oversold territory.

Despite the VN-Index's strong performance on October 21, a single trading session is not sufficient to confirm the beginning of a new upward trend.

Investors will need to monitor whether trading liquidity remains strong, how broadly gains are distributed across the market, whether foreign investors continue buying, and whether the index can hold above its recently recovered levels.

These factors will help determine whether the rebound has the strength to develop into a sustained recovery.

Manh Ha