Stock market struggles after news of Vietnam's promotion to 'secondary emerging'

At the end of the morning session on October 8, VN-Index slightly decreased although the market was still excited after FTSE Russell officially upgraded Vietnam to the "secondary emerging" group. HSBC assessed this as a historic milestone, paving the way for foreign capital flows to reach 10 billion USD.

The morning session on October 8 recorded a tug-of-war situation in the market when VN-Index decreased slightly by 1.63 points (0.1%) to 1,683.67 points, after a strong increase at the beginning of the session thanks to the positive effect from the upgrade information. Meanwhile, HNX-Index increased by 0.09 points (0.03%) to 272.96 points, while UPCoM-Index decreased by 0.19 points (0.17%).

Green and red alternated in the morning session on October 8. Screenshot

Total market liquidity reached VND18,430 billion, equivalent to 614.15 million shares matched. Foreign investors net bought VND1,288.74 billion and sold VND2,211.25 billion, continuing the trend of slight net buying on the HOSE floor.

There was a clear differentiation in the finance and banking group, with CTG increasing by 1.55%, MBB and SHS increasing slightly, while VIX and TCB decreased by 1.47% and 1.03%, respectively. MWG shares increased sharply by 2.95%, the code with the most positive impact on the index, followed by CTG, GEE, LPB andACB .

The top net buyers were MWG (VND94.4 billion), ACB (VND56 billion) and GEX (VND50 billion). On the contrary, SSI (VND174.6 billion), MSN (VND116.9 billion) and VRE (VND95.4 billion) led the net sellers.

By sector, media and entertainment and essential aviation trade increased by 1.57% and 1.56% respectively. On the contrary, consumer services, utilities and pharmaceuticals groups decreased slightly by less than 0.2%, showing that cash flow was somewhat cautious after the excitement at the beginning of the session.

Earlier, in the early morning of the same day, FTSE Russell announced the upgrading of Vietnam's stock market from "frontier" to "secondary emerging", effective from September 21, 2026 after the mid-term review in March 2026.

Mr. Gary Harron, Head of HSBC Vietnam Securities Services, affirmed: “The upgrade by FTSE Russell is a testament to Vietnam’s rising international status. This is a recognition of the joint efforts of the Government , management agencies and market participants.”

According to Mr. Harron, removing the “marginal” label will have a strong impact on investor confidence, change the long-term development trajectory of the market and reduce dependence on a single trading partner. HSBC Global Investment Research predicts that foreign capital flows could reach between 3.4 and 10.4 billion USD after the upgrade, coming from both active and passive funds.

HSBC is currently the custodian bank serving about half of the international institutional investors in Vietnam, accompanying the market for the past 25 years. Mr. Harron emphasized that the bank is committed to "accompanying Vietnam and its customers on the journey to increase the scale and capacity of the market and take advantage of the benefits from the upgrade".

Also on the morning of October 8, Mr. Pham Luu Hung, Chief Economist of SSI Research, commented that the FTSE Russell upgrade was a "very good" signal, helping to ease investors' concerns and showing that Vietnam has reached international standards.

According to PHS Securities, the upgrade will help reduce capital costs, increase mobilization capacity, create conditions for businesses to expand production, and contribute to maintaining GDP growth around 8% in the new period.

Source: https://baotintuc.vn/thi-truong-tien-te/thi-truong-chung-khoan-giang-co-sau-thong-tin-viet-nam-len-hang-moi-noi-thu-cap-20251008115701674.htm