Second-half outlook turns constructive for equities

The outlook for Vietnam’s stock market remains positive on expectations of earnings recovery, public investment acceleration, and structural reforms, even as trading liquidity and foreign flows suggest a continued focus on selective opportunities.

- By Khanh Linh

The country’s stock market recorded a series of positive sessions over the past week, with the benchmark index extending its gains across multiple trading days, signalling a broadly supportive tone despite uneven liquidity conditions.

This momentum carried into the June 24 session, where advancing stocks once again outnumbered decliners as gains in real estate and banking shares continued to underpin market sentiment. The contrast between index gains and subdued trading volumes reinforced the view that the market is advancing without a strong confirmation from capital inflows.

Against this backdrop, Luong Duy Phuoc, head of Market Research at Kafi Securities, said the VN-Index has been moving largely within the 1,750-1,810-point range in recent sessions, reflecting a market that remains short of a clear directional catalyst.

“Liquidity remains relatively subdued, meaning capital flows are still not strong enough to support a sustained upward trend. However, expectations of stable interest rates and stronger credit growth in the second half of the year continue to shape market positioning,” he told VIR.

He added that this trend is becoming increasingly visible in sector rotation, with capital flows showing greater interest in areas linked to domestic growth drivers.