Vietnam Stock Liquidity Drops 5,000B VND Ahead of FTSE Russell Review

Overview

Vietnam’s stock market saw liquidity drop by over 5,000 billion VND to below 14,000 billion VND on August 17, 2026, the lowest in a month, as investors turned cautious ahead of FTSE Russell’s semi-annual review. The VN-Index fell for a third consecutive session to 1,727 points, with foreign investors net selling about 600 billion VND. Vingroup (VIC) was the biggest negative contributor to the index, while oil and gas stocks showed the most synchronized gains.

Key Facts

• Market liquidity fell to under 14,000 billion VND, down more than 5,000 billion VND from the previous session.
• Foreign investors net sold approximately 600 billion VND, with gross buying of 1,300 billion VND and selling of 1,900 billion VND.
• VN-Index closed at 1,727 points, its lowest level since the start of the month, after three consecutive losing sessions.
• VIC was the top negative contributor to the index, followed by LPB, VPB, VCB, and ACB.
• VIC’s matched order value exceeded the combined value of SHB, HPG, and SSI, marking its fourth straight session with over 1,000 billion VND in trading.
• STB rose 2.6% to 74,200 VND, leading banking gains, while large caps like LPB, ACB, VPB, and SHB fell up to 3%.
• In the securities group, SSI, VPX, HCM, and TCX gained up to 1%, while VCI, VIX, and VND closed lower.
• Oil and gas stocks GAS, BSR, PLX, and PVD all closed above reference, with the highest gain at 4%.

What Happened

According to the article, market liquidity contracted sharply as investors adopted a cautious stance ahead of FTSE Russell’s semi-annual review, with the official list announcement expected on August 21. Domestic and foreign investors reduced activity, leading to a third straight decline in the VN-Index, though the drop narrowed to about 2 points. The index closed at 1,727 points, the lowest since the start of the month.

Foreign investors net sold about 600 billion VND, with gross buying of 1,300 billion VND and selling of 1,900 billion VND. The article cites brokerage reports from VDSC, MBS, and Yuanta Vietnam, which noted that low liquidity and foreign selling are major challenges for the index’s recovery, but also highlighted attractive valuations and statistical probabilities supporting a potential rebound in the second half of the month.

Market Context

On the HOSE, VIC closed at 198,000 VND on August 17, 2026, and was the largest negative contributor to the index. The broader market showed mixed performance across sectors, with banking stocks like STB rising 2.6% while large caps such as LPB, ACB, VPB, and SHB fell. Securities stocks were mixed, with SSI, VPX, HCM, and TCX gaining, while VCI, VIX, and VND declined. Oil and gas stocks were the most synchronized, with all major names closing higher. The VN-Index’s P/E ratio stood at around 12.5 times, in line with the five-year average, and MBS projected a target range of 1,800-1,850 points in the base and positive scenarios, with a downside to 1,650-1,680 points.

Strategic Significance

For long-term investors, the current pullback may present an opportunity to accumulate positions in fundamentally strong sectors, particularly those likely to be included in FTSE Russell’s review. The market’s resilience, excluding Vingroup’s impact, suggests underlying strength, as the index would have risen about 28 points without VIC’s drag. The low P/E ratio and statistical probabilities cited by MBS indicate that the market is trading at reasonable valuations, potentially offering a favorable entry point for patient investors. However, the persistent foreign selling and low liquidity remain headwinds that could limit near-term upside.

What to Watch

• FTSE Russell’s official semi-annual review announcement, expected on August 21, 2026.
• Foreign investor net buying/selling trends in the coming sessions.
• VN-Index’s ability to hold above 1,700 points and potential rebound toward 1,800 points.
• Q2 earnings reports from major listed companies, particularly in banking and real estate.
• Any policy signals from the State Bank of Vietnam regarding monetary policy or market support measures.