The trading session of October 27 was quite positive with the gaining momentum spreading to the whole market. The VN-Index closed with a strong increase of 31.39 points (2.26%) to 1,423.02 points, thereby setting a new peak in the 21 years of establishment of the Vietnamese stock market.
The increase of 2.26% in the session was also the strongest recorded in the past 3 months, since the session of July 20 (VN-Index increased by 2.39%).
With this rally, the HoSE market capitalization increased by nearly 122 trillion dong (about 5.4 billion USD), to approximately 5.52 million dong.
The market’s uptrend took place on a large scale with many strong breakthroughs in many sectors such as securities, banking, real estate, construction materials, oil and gas, etc. In which, GAS is the stock that has the most positive impact on VN. -Index contributed 3.88 points to the general uptrend.
Next in terms of contribution level on the market peak day are VIC (2.73 points), VHM (2.57 points), MSN (2.18 points), VCB (2 points), HPG (1.84 points). points), CTG (1.48 points)…
VN-Index set a historic peak in the session of October 27, market capitalization increased by $5.4 billion – Photo 2.
The unexpected positivity of the market in the session of October 27 took place in the context that the 4th wave of Covid-19 was gradually controlled, many businesses announced positive growth in Q3 business results. In addition, the expectation of an economic stimulus package of hundreds of trillions of dong is said to be an important driving force for the market to rise above historical peaks.
In recent reports, many organizations have given optimistic views on Vietnam’s economy as well as the stock market. According to Dragon Capital’s forecast, Vietnam’s GDP growth in 2021 may be at 2-2.4% due to the impact of the Covid-19 wave, but this modest figure will be a premise for growth to exceed ranks, forecast 9.6% next year.
Another positive signal in recent days is that the net selling trend of foreign investors has slowed down and even in the session of October 27, foreign investors returned to a net buying of more than 1,000 billion dong on HoSE.
The inflow of domestic ETFs also showed positive signals when continuously attracting capital in recent days, after having made a strong net withdrawal in the previous 2 months. Statistics show that market movements are often in sync with the flow of domestic ETFs. Therefore, the fact that domestic ETFs owned by large organizations such as Dragon Capital, SSI, VinaCapital, Mirae Asset… are drawing back capital will be a positive factor for the market.