VN-Index rebounds despite broad market weakness, while foreign investors extend selling streak and MSCI talks fuel upgrade optimism.
MARKET INSIDER – Vietnam’s stock market finally broke a seven-session losing streak on Thursday, offering investors a much-needed reprieve after days of sustained selling pressure. But beneath the headline gain, the recovery revealed a more complex reality: most stocks still fell, foreign investors continued their aggressive withdrawal, and the rally relied heavily on a handful of large-cap names.
The benchmark VN-Index rose 12.5 points, or nearly 0.7%, to close at 1,831.5, ending one of its longest recent declines. The rebound comes at a critical moment for Vietnam’s capital markets, as policymakers intensify efforts to attract global institutional investors and secure a long-awaited upgrade from frontier-market status.
Despite the positive close, market breadth remained weak. On the Ho Chi Minh Stock Exchange (HoSE), 164 stocks declined while only 140 advanced, underscoring what local traders describe as a “green index, red portfolio” session. The imbalance suggests that while selling pressure is easing, investor confidence remains fragile after recent volatility.
Energy stocks emerged as standout performers amid renewed interest in oil-linked assets. Shares of Petrolimex surged to their daily limit, while Binh Son Refining and Petrochemical gained 3.8%. Construction and materials stocks lagged, reflecting ongoing caution toward sectors tied to domestic demand. Meanwhile, conglomerate Vingroup played a decisive role in lifting the benchmark, with its flagship stock VIC contributing more than four points to the VN-Index’s advance. Banking and property shares including Vietnam Prosperity Joint Stock Commercial Bank-tracked favorites STB, VHM, and BID also provided support.
Trading activity strengthened as investors returned to the market. Total turnover on HoSE exceeded VND22.1 trillion (approximately US$850 million), up roughly VND1.5 trillion from the previous session. However, foreign investors remained net sellers for a fifteenth consecutive trading day, offloading approximately VND5.8 trillion worth of shares. Much of the selling was linked to negotiated transactions involving VIC, while technology giant FPT Corporation continued to attract strong foreign buying interest.
The market’s mood improved after Vietnam’s State Securities Commission of Vietnam held discussions in Singapore with nearly 100 international investors and representatives from MSCI Inc.. The meetings focused on market reforms aimed at improving foreign investor access and accelerating Vietnam’s path toward emerging-market classification. Such an upgrade could unlock billions of dollars in passive and active capital inflows, similar to what markets such as Saudi Arabia and the United Arab Emirates experienced following their own index promotions.
Analysts note that the 1,800-point level is emerging as a key technical support zone. According to research from VPBank Securities, bargain-hunting demand has started to appear, although investors remain cautious and sector rotation remains uneven. If the benchmark can maintain support above this threshold, the market may enter a consolidation phase before establishing its next major trend.
The bigger story for global investors may not be Thursday’s rebound itself, but the growing convergence of two powerful forces: Vietnam’s economic rise within global supply chains and its accelerating capital-market reforms. If policymakers can convert reform promises into tangible market accessibility improvements, the recent foreign selling wave may ultimately be remembered not as a warning sign—but as a final shakeout before a new phase of international capital inflows begins.
