HANOI: The domestic stock market ends a turbulent trading week with broad-based weakness, extending the downtrend for a third consecutive week.
On the Ho Chi Minh Stock Exchange (HOSE), the VN‑Index declined 2.24% from the previous week to 1,787.45 points.
Trading activity on the southern bourse also weakened.
The average matched volume over the week reached around 651 million shares per session, down more than 1.5% from the previous week.
Average trading value fell to roughly 16.5 trillion dong per session, down nearly 6% week-on-week and about 17% below the 20-week average.
Analysts said the figures point to large capital staying on the sidelines rather than returning to actively take risk.
Trading during the week was short-term rotation among industry groups, while demand for many large-cap stocks remained relatively weak.
Banking, securities, technology and real estate, sectors with major weight in the index, faced significant correction pressure.
Some mid and small-cap stocks saw isolated gaining sessions, but these moves did not provide strong support for a broader market trend.
Foreign trading continued to weigh on the market.
Across the three exchanges, the report said foreign investors were net sellers of about 87.1 million shares, equivalent to over 2.1 trillion dong.
Compared with the previous week, net selling volume increased by roughly 45%, while net selling value fell by around 15%.
On HOSE specifically, foreign investors net sold across all trading sessions, with total net selling volume of more than 88.85 million shares and net selling value of about 2.2 trillion dong.
While some market views argued that valuation has become more attractive after the sell-off, potentially supporting a technical rebound, the near-term direction for the market is likely driven less by the second quarter business results and more by macro variables, particularly interest rate levels.
Interest rates are remaining high at many banks, with one bank offering a promotional savings rate of 8% per year for a six-month term, exceeding the interest rate levels shown by many listed banks.
This runs counter to investor expectations that deposit rates would cool sooner to support the economy.
At a recent conference titled “Removing Bottlenecks, Unlocking Resources, Promoting Growth”, Governor Pham Duc An of the State Bank of Vietnam said that the central bank’s interest rate policy is relatively difficult, because the economy’s demand for capital remains very high, while capital mobilisation for the economy is still limited.
“We focus on economic growth and on credit growth,” he said.
“Therefore, when there is a capital shortage, interest rates naturally rise.”
Sustained high rates pressure valuations across both bonds and stocks.
In equity markets, higher rates typically increase the discount rate applied to future cash flows, raise the cost of capital and weigh on earnings expectations, leading to generally lower equity valuations.
This was cited as one reason liquidity has not yet bounced back, despite the start of the second quarter financial reporting season showing generally positive results.
In its mid-year 2026 market strategy report, SSI Securities said the market is likely to continue moving within a narrow range.
One key reason cited was the expectation that interest rates will remain high for longer than previously anticipated, limiting the ability of capital to flow meaningfully into risk assets such as securities.
Saigon – Hanoi Securities (SHS) said the VN Index has not yet improved its short-term trend, and may continue testing a key support zone around 1,770 points.
If that level is lost, SHS said the index could fall further toward 1,750 points. — Viet Nam News/ANN
