Real estate and stocks surge, VN-Index jumps nearly 30 points

Most stocks in many industry groups increased positively right from the morning session of August 16 with overwhelming buying power. This was a rather surprising development because previously the stock market witnessed many consecutive sessions of declining liquidity.

At the end of the trading session on August 16, the VN-Index increased by 28.67 points (equivalent to an increase of 2.34%) to 1,252.23 points. The HNX-Index and Upcom-Index also increased sharply. Liquidity on HoSE reached VND22,730 billion and on HNX reached VND1,716 billion, about 2 times higher than the previous session.

A series of real estate stocks continued to recover and break out in the session of August 16. The group of stocks owned by billionaire Pham Nhat Vuong all increased strongly again. Vingroup (VIC) increased by 350 VND to 41,150 VND/share; Vinhomes (VHM) increased by 550 VND to 38,400 VND/share; Vincom Retail (VRE) increased by 500 VND to 18,300 VND/share.

Some other real estate codes also increased impressively. DIC Corp. (DIG) increased by 1,550 VND to 23,750 VND/share. Novaland (NVL) also increased to the maximum allowed range, by 750 VND to 11,950 VND/share.

Shares of Dat Xanh (DXG) of Chairman Luong Ngoc Huy (replacing Mr. Luong Tri Thin in early July) also increased by 900 VND to 14,100 VND/share. Phat Dat Real Estate (PDR) of Mr. Nguyen Van Dat also increased by the full range by 1,200 VND to 18,800 VND/share.

Many industrial real estate and construction stocks also hit the ceiling or near the ceiling, such as: Viglacera (VGC) increased by VND2,800 to VND43,100/share; Kinh Bac Urban Development of Mr. Dang Thanh Tam increased by VND1,700 to VND26,600/share...

Securities stocks also jumped. SSI Securities (SSI) of Mr. Nguyen Duy Hung increased by 1,800 VND to 32,700 VND/share. VNDirect increased by 750 VND to 15,000 VND/share... AGR, BSI, FTS, VDS... hit the ceiling.

Next, the banking group also performed positively and contributed to pushing the VN-Index up. Vietcombank (VCB) shares increased by 500 VND to 88,100 VND/share, BIDV (BID) increased by 850 VND to 47,500 VND/share, MBBank (MBB) increased by 800 VND to 24,050 VND/share...

Many experts from a number of securities companies were also quite surprised by the strong increase of the VN-Index in the session of August 16. Accordingly, they did not see a strong enough reason to help the market have a breakthrough increase like today.

However, in reality, in addition to the sharp decline in many stock prices and the emergence of bottom-fishing demand, the market also recorded some positive information, which had a positive impact on the recently uncertain psychology of many investors.

First of all, international stock markets have stabilized after a deep decline and recovered quite strongly. In the session of August 15 (ending early morning of August 16, Vietnam time), the US broad stock index - S&P 500 increased for the 6th consecutive session, while the Dow Jones industrial index increased by more than 550 points.

Investors around the world regained confidence in the US economy after the country released encouraging labor and consumer data, thereby helping to ease concerns about an economic recession. Technology stocks also rose sharply, with the Nasdaq Composite Index rising 2.34% on August 15, helping to erase doubts about a collapse of stocks in this sector.

Asian stocks also rallied on Thursday, heading for their biggest weekly gain in more than a year. Japanese stocks rose sharply as the yen weakened again, potentially boosting export growth.

As for China, its central bank recently pledged more measures to support economic recovery.

Domestically, the USD/VND exchange rate is stable and tends to decrease back to 25,250 VND/USD (selling price of USD at Vietcombank), after reaching 25,485 VND/USD at the end of April. The USD in the international market has decreased sharply, with the DXY index down to 102.9 points, compared to 106.25 points at the end of April.

In the banking market, the growth in savings interest rates has slowed down. Some banks have turned around and adjusted their deposit interest rates downward. This is also a signal that money flow into the banking channel may be reduced.

Investors are also expecting that when the US lowers interest rates, the USD/VND exchange rate will fall further. In addition, the State Bank of Vietnam will have more room to boost economic growth.

Foreign investors have recently reversed their net buying of stocks on the Vietnamese stock market.