Bank stocks drive market gains as VN-Index closes final Friday of 2024 on a positive note

A transaction office of Fortune Vietnam Joint Stock Commercial Bank. LPB shares of this lender hit the daily ceiling on Friday, contributing to a positive end to the week for the VN-Index. — Photo Baotintuc.vn

Việt Nam's stock market ended the final Friday of 2024 on a positive note, with banking stocks leading the rally and VN-Index successfully surpassing the 1,275-point mark. Liquidity improved significantly, and foreign investors returned to net buying.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose 2.27 points, or 0.18 per cent, to close at 1,275.14 points. Market breadth was negative, with 202 declining stocks outnumbering 120 gainers. Trading liquidity on the southern bourse improved significantly, reaching approximately VNĐ16.8 trillion (US$658.5 million), with nearly 671 million shares changing hands.

The VN30-Index, which tracks the top 30 largest stocks by market capitalisation on the HoSE, also advanced by 4.16 points, or 0.31 per cent, to settle at 1,346.84 points. Within the VN30 basket, 13 stocks rose, 10 fell, and 7 remained unchanged.

Leading the market’s rally was the Fortune Vietnam Joint Stock Commercial Bank (LPB), which hit its daily limit up of 6.9 per cent, contributing over 1.3 points to the VN-Index. The Vietnam Joint Stock Commercial Bank For Industry And Trade (CTG) also posted gains of 1.57 per cent, while the Ho Chi Minh City Development Joint Stock Commercial Bank (HDB) climbed by 3.31 per cent. Additionally, the Vietnam Technological and Commercial Joint Stock Bank (TCB) and the Vietnam International Commercial Joint Stock Bank (VIB) recorded gains of 1.03 per cent and 1.52 per cent, respectively.

However, some large-cap stocks limited overall market gains. Vinhomes JSC (VHM) fell by 0.74 per cent, Hòa Phát Group Joint Stock Company (HPG) declined by 0.56 per cent, and the Vietnam Rubber Group - Joint Stock Company (GVR) edged down by 0.65 per cent.

Analysts from Việt Dragon Securities commented: "The market rose close to the 1,280-point level during the morning session but faced selling pressure in the afternoon, closing around 1,275 points. Liquidity increased compared to the previous session, indicating that buying demand emerged at lower prices to support the market."

"Supportive technical signals suggest that the market may continue to recover in the next session, but this recovery might remain technical in nature. The market is expected to face caution around the 1,280-point resistance zone, with risks of a pullback still present."

"Investors are advised to remain cautious, closely observe supply and demand movements, and manage their portfolios prudently to avoid overexposure in case of a market correction."

On the Hà Nội Stock Exchange (HNX), the HNX-Index declined by 0.33 per cent to close at 229.13 points, with trading value surpassing VNĐ921 billion and over 52 million shares traded.

Foreign investors resumed net buying, purchasing shares worth more than VNĐ617 billion on the HoSE.

Despite ongoing caution in the market, the ability to sustain gains amidst reduced selling pressure indicates underlying resilience. Investors are expected to remain watchful of key technical levels in the upcoming trading sessions.