Vietnam's VN-Index rebounds 3% as July slump eases

After four consecutive weeks of decline, Vietnam’s VN-Index posted its first weekly gain, rising about 3% to close the week of July 31 at 1,735 points. The rally ended a month‑long slide that saw the index fall more than 6% and drop over 250 points from its recent peak, marking the steepest decline since the start of the year.

Analysts attribute the recovery to strong second‑quarter earnings from more than 670 listed companies, which lifted profit after‑tax by roughly 25.6% year‑on‑year and made valuations more attractive. Buying was led by large‑cap stocks such as VHM, VCB, BID and CTG, while foreign investors continued to sell net, though the pace slowed and some blue‑chip shares saw inflows. Liquidity remained weak, with trading volume down about 10% and order‑matching rates falling around 6% versus the 20‑week average.

Technical outlooks suggest the index may trade in the 1,700‑1,770 point range before establishing a clearer trend, and market participants are hopeful for further gains in August as the valuation gap narrows and earnings momentum persists.