Vietnam's stock market surpasses all-time high, what do experts say?

Stock market surpasses 2022 peak. (Photo: Gia Thanh)

The outstanding stocks on the trading day of July 28 include VND, SHS, VIX, MBS, SBS, VDS, AGR, APS, WSS. Other codes also increased well from 4-5%.

Banking stocks also played a clear role in increasing the VN-Index. Notably, codes such as VCB, VPB, BID, TCB, SHB contributed 6.6 points to the market.

The remaining codes in the industry also increased well.

The VN-Index’s breakthrough was thanks to the huge cash flow that continues to flow into the market. In the morning session of July 28 alone, the total transaction value on the HoSE floor exceeded VND26,600 billion, an impressive figure reflecting the optimistic sentiment of investors.

This development coincides with the forecasts of many securities companies. Strong cash flow and excited sentiment will help VN-Index surpass the old peak and possibly reach the 1,600 point zone in the short term.

Mr. Nguyen The Minh, Director of Analysis for Individual Clients, Yuanta Vietnam Securities Company, commented that the P/E (price-to-earnings ratio) of VN-Index has now approached the 10-year average after the index set a new historical peak.

However, compared to past peaks like 2018 or 2021 (when cheap money was abundant), current valuations are still lower.

"In 2025, the market is being supported by many factors such as: Loose monetary policy, economic growth target for the 2025-2030 period, and especially the prospect of market upgrade.

These macro factors could help the valuation level surpass the 10-year average in the coming time, opening up potential growth space," Mr. Minh affirmed.

However, the analysis director of Yuanta Vietnam also warned about a short-term technical correction.

Mr. Minh said that the nearest resistance level in terms of valuation is around the P/E 18.x level, equivalent to the VN-Index area of about 1,858 points. However, in the short term, the 10-year average is still a notable resistance. This is also a major resistance level in the entire 2023-2024 period.

"Therefore, after the recent strong increase, the market may soon experience a technical correction to consolidate the foundation before moving towards higher levels. Investors need to be cautious and closely monitor the next developments of the market," said the Director of Analysis of the Retail Client Division at Yuanta Vietnam Securities Company.

Source: https://baoquocte.vn/thi-truong-chung-khoan-viet-nam-vuot-dinh-cao-moi-thoi-dai-chuyen-gia-noi-gi-322592.html