Brian Jeffrey
The VN-Index saw a significant surge on August 20 for the third consecutive trading day, fueled by strong cash inflow, especially in blue-chip stocks such as Vin-family shares and bank shares.
On August 20, the stock market closed with the VN-Index rising by 10.93 points to reach 1,272.55 points. The HNX-Index and UpCom Index also saw increases of 0.55% and 0.41%, respectively. Market liquidity stood at VND19 trillion on HOSE, VND1.3 trillion on HNX, and VND676 billion on UpCom.
Analysts noted significant price hikes in real estate shares, with some hitting the ceiling and others rising sharply.
Shares of Vin-family companies were particularly noteworthy. Vingroup (VIC) saw a VND550 increase to VND41,700 per share, Vinhomes (VHM) rose by VND800 to VND39,400 per share, and Vincom Retail (VRE) climbed by VND450 to VND18,750 per share.
Other real estate shares like Phat Dat Real Estate (PDR), Dat Xanh (DXG), and Hai Phat Investment (HPX) also saw notable price upticks.
Novaland (NLV), DIC Corporation (DIG), and SaiGon Real Estate (SGR) experienced price increases as well.
Finance and bank shares also had a strong trading day with companies like VNDirect (VND), BIDV (BID), and VietinBank (CTG) showing positive movements.
Foreign investors made significant net purchases totaling VND330 billion, showing interest in various Vietnamese market shares.
The stock market’s upswing mirrored the global trend of rising stock prices and a cooling dong/dollar exchange rate. Additionally, a real estate frenzy in suburban Hanoi added momentum to market activities.
The dollar price dipped to VND25,080 per dollar by the end of August 20 compared to previous rates, indicating a positive market sentiment.
Real estate shares had a tough first half of 2024, but cash flow is now turning towards them, signaling a revival in the sector. The hope for improved business performance in the second half of the year is attracting investors.
Certain real estate firms like Vinhomes are accelerating project deliveries, showing signs of recovery in the sector.
Policy changes and new laws may have mixed effects on the real estate market in the short term, necessitating cautious investor behavior.
VNDirect Securities advises against expecting sharp surges in real estate shares for the remainder of the year, suggesting that recovery will be more evident once enterprises stabilize.
