Hanoi's stocks experience an upward trend as market enthusiasm intensifies
Hanoi Stock Exchange Experiences Buoyant July 2021
The Hanoi Stock Exchange (HNX) experienced a significant surge in trading activity in July 2021, with a notable increase in proprietary trading by member securities firms, reaching over VNĐ443.9 billion, marking a 7.1% increase [1].
Several key factors contributed to this strong performance. The HNX-Index posted solid gains, rising 3.63% to 263.79 points. Trading value reached approximately VND4 trillion, and nearly 200 million shares were traded, indicating high liquidity and strong investor interest [1].
A broadly positive market breadth helped push prices higher, with many stocks advancing, creating an optimistic market sentiment [1]. Strong capital flows and consensus among investors characterized the market rally during that period, making the overall market momentum robust and sustained [1].
The supportive macroeconomic environment also played a role. Trade agreements reducing tariff risks, low interest rates, and sustained growth in foreign direct and public investment bolstered investor confidence [4].
Notable performers included MB Securities (MBS), which recorded 207.8 million shares, equivalent to 6% of the total, and Saigon-Hanoi Securities (SHS), which rose 79.6% to VNĐ23,000. SHS led the market with a trading volume of 956.1 million shares [1].
Other companies that saw significant growth include Alphanam E&C (AME), which rose by 59.6%, and Asia-Pacific Securities (APS), which soared 98.5% to close at VNĐ13,300 per share [1].
The HNX listed 306 companies by the end of July, and the total market capitalisation exceeded VNĐ398.7 trillion, reflecting a 12% increase from June [1]. The average daily transaction value climbed 64.5% to over VNĐ2.77 trillion (US$105.5 million), and trading activity surged, with an average daily volume of 150.4 million shares [1].
Foreign investors had a net buying position of VNĐ547 billion, with trading values rising by 61% [1]. The busiest trading day was on July 31, with 195.5 million shares exchanged [1]. Companies such as I.P.A Investment Group (IPA) also saw a 58% increase [1].
In summary, the key drivers were solid market breadth, improved liquidity with heavy trading volume, strong capital inflows, and favorable macroeconomic and trade conditions promoting investor confidence. The strong performance and increase in trading activity at the Hanoi Stock Exchange in July 2021 underscore the positive outlook for the Vietnamese stock market in 2021–2022.
[1] Source: Hanoi Stock Exchange official data [4] Source: Vietnamese government economic reports and analyst reports
- The surge in trading activity at the Hanoi Stock Exchange in July 2021, driven by factors such as a robust market momentum, solid market breadth, and favorable macroeconomic conditions, emphasized the potential for artificial intelligence to revolutionize stock trading by providing sophisticated analysis and predictions, further boosting the financial industry and business sector.
- As foreign investors continued to demonstrate a net buying position, the integration of advanced AI trading algorithms may lead to more informed investment decisions, helping to mitigate risks in an increasingly volatile market, especially during potential trade wars or geopolitical conflicts that could impact the stock market and industry growth.
- With the positive outlook for the Vietnamese stock market in 2021–2022, as evidenced by the buoyant July 2021 performance, incorporating AI in the trading strategies of major industry players such as MB Securities, Saigon-Hanoi Securities, Alphanam E&C, and Asia-Pacific Securities could lead to even greater growth and profitability, reshaping the landscape of the finance and business landscape in Vietnam and beyond.
