The Vietnamese stock market kicked off its first trading session after the holiday on May 5, 2025, with a wave of positive momentum, thanks to the successful launch of the new KRX trading system. The VN-Index saw a steady increase, closing near its highest level of the day as demand surged across various stock groups.
As the morning session progressed, there was a notable uptick in buying activity, particularly in the securities sector, which is expected to benefit significantly from the enhanced liquidity and shorter transaction times provided by the new system. The positive sentiment extended beyond just securities; the real estate, steel, and fertilizer sectors also experienced a robust performance.
Despite the banking sector not being overly active, it played a crucial role in supporting the market's upward trajectory. The total trading value on the Ho Chi Minh City Stock Exchange (HOSE) reached over 14 trillion VND, indicating a healthy market activity.
Foreign investors were net buyers during this session, primarily purchasing shares of VRE while selling FPT. This trend reflects a growing confidence in the market, especially as many companies announced their business results for the first quarter of 2025.
The successful operation of the KRX system marks a significant milestone for the Vietnamese stock market, having undergone a transition process from April 29 to May 4, 2025. This transition involved multiple stakeholders, including contractors, the HOSE, the Hanoi Stock Exchange (HNX), and the Vietnam Securities Depository (VSDC), along with over 90 market participants.
On the same day, Circular 18/2025/TT-BTC issued by the Ministry of Finance came into effect, amending regulations related to securities registration, custody, clearing, and settlement. This circular introduces a non-prefunding mechanism under the KRX system, aiming to enhance the market’s operational efficiency and facilitate its upgrade.
A notable change in this circular is that foreign investors will have until the end of T+3 days to settle their payments, allowing them additional time to acquire shares if necessary. This adjustment is expected to attract more foreign investment, further stabilizing the market.
Looking ahead, Vietnam is set to engage in its first round of negotiations with the United States regarding new tariff policies on May 7, 2025. This follows a period of anticipation among companies regarding the progression of trade agreements.
In terms of economic indicators, Vietnam's Purchasing Managers' Index (PMI) for April stood at 45.6 points, signaling a significant decline in new orders, exports, and output. In comparison, the ASEAN PMI recorded a slightly better figure of 48.7 points. These figures indicate that while the market has shown resilience, challenges remain in terms of overall economic health.
In the derivatives market, the VN30F2505 contract saw a positive session on May 5, 2025, as demand surged, pushing the price above 1316 points. The volume for this contract decreased by over 23% compared to the previous session, but the open interest (OI) rose to over 44,000 contracts, indicating a strong interest among traders.
The VN30F2505 contract formed a clear bullish candlestick on the daily chart, suggesting that demand was strong enough to support further price increases, potentially reaching the 1323 point area or even higher to 1330 points in upcoming sessions. The short-term trend remains positive, with a trailing stop loss set at 1270 points, providing a safety net for traders.
Overall, the Vietnamese stock market is showing signs of recovery and adaptation following recent challenges, with the KRX system expected to play a pivotal role in enhancing market liquidity and efficiency. Investors are encouraged to keep an eye on key stocks such as VNM, STB, CTG, SSI, VCI, IMP, GEX, and POW, which are highlighted as potential opportunities in the current market environment.
As the market continues to evolve, the successful integration of the KRX system and the upcoming negotiations with the United States will be crucial in shaping the future landscape of Vietnam's stock market and its economic health.