Investors cautious despite stock market upgrade boost
VOV.VN - Vietnam’s stock market experienced a brief surge on October 8 after FTSE Russell announced Vietnam’s upgrade from Frontier to Secondary Emerging Market status, but cautious investor sentiment and profit-taking quickly reversed the gains.
The upgrade sparked an immediate and strong reaction in early trading. At the start of the session, aggressive buying pushed the VN-Index up nearly 50 points within minutes during the At-The-Opening-Order (ATO) phase. Green swept across the trading board, especially among large-cap bluechip stocks, many of which are expected to benefit directly from increased foreign inflows once the reclassification takes effect.
Several stocks surged between 3% to 5%, and some even saw sharper gains as speculative capital flooded in. However, the momentum was short-lived.
As the session progressed, short-term profit-taking emerged, particularly in the bluechip group, dampening the initial rally. By the end of the ATO phase, the VN-Index’s gain had narrowed to just 11 points, and soon slipped below the reference level.
This swift reversal reflects lingering investor hesitation, as market participants appear reluctant to make aggressive commitments despite the market receiving one of its most positive news developments in years.
By the end of the morning session on October 8, VN-Index declined by 1.63 points (-0.1%) to 1,683.67; HNX-Index edged up 0.09 points (+0.1%) to 272.96; and UPCoM-Index fell 0.19 points (-0.2%) to 110.05
Total market liquidity reached around VND18.4 trillion (equivalent to US$750 million), up over 30% from the previous session but still below levels seen during more active trading days. This reflects a market still in wait-and-see mode, with cautious cash flows.
According to several estimates, the reclassification could help Vietnam's stock market attract US$3.5 - 6 billion in foreign capital once the country is included in emerging market indices.
The upgrade is set to take effect on September 21, 2026, following an interim review in March 2026, during which FTSE Russell will evaluate Vietnam’s progress in improving accessibility for global investors.
FTSE Russell upgrades Vietnam’s stock market to secondary emerging market status
VOV.VN - Index provider FTSE Russell released its Equity Country Classification report for September 2025 on October 7 (local time), officially upgrading Vietnam’s stock market from frontier to secondary emerging market status.
