A processing unit at the Dung Quất Oil Refinery. Shares of Bình Sơn Refinery and Petrochemical LLC (BSR) hit the daily limit of 7 per cent on Wednesday. — VNA/VNS Photo Huy Hùng

HÀ NỘI — Việt Nam’s stock market extended its rebound on Wednesday, with the benchmark VN-Index climbing back above the 1,725-point mark after a broad-based rally led by consumer-related stocks.

On the Hochiminh Stock Exchange, the VN-Index surged 3.08 per cent to close at 1,728.34 points.

Meanwhile, the HNX-Index on the Hanoi Stock Exchange also rose 2.89 per cent to 247.02 points.

The gains marked a continued recovery after a sharp drop at the start of the week, with investor sentiment improving in the past two sessions.

In HCM City, market breadth remained strongly positive, with 645 stocks rising and 157 declining across the market. In the VN30 basket, which tracks the top 30 shares by market value and liquidity, 28 stocks gained, while one fell and one was unchanged.

Liquidity declined substantially, however, with over 997 million shares worth VNĐ29.5 trillion (US$1.1 billion), down 35 per cent in volume and 29 per cent in value compared to Tuesday.

In Hà Nội, trading volume reached nearly 86 million shares worth VNĐ1.7 trillion, down around 40 per cent in both volume and value.

The market maintained its upward momentum throughout the afternoon session despite some selling pressure. Several large-cap stocks supported the rally, notably Vingroup (VIC), Vinhomes (VHM), PV Gas (GAS) and Bình Sơn Refinery (BSR), which together contributed more than 18 points to the VN-Index.

Sector performance was broadly positive, with the strongest gains recorded in non-essential consumer goods, communication services and energy, which rose 5.52 per cent, 5.51 per cent and 5.18 per cent, respectively.

According to Trần Hoàng Sơn, market strategy director at VPBank Securities, recent geopolitical tensions could trigger short-term volatility in the Vietnamese stock market, mainly through higher oil prices and inflation concerns. However, historical data shows such shocks often cause only temporary declines if the conflict does not escalate globally.

He said the reaction of Việt Nam’s market is likely to remain short-lived unless rising oil prices significantly affect global growth or domestic inflation.

Meanwhile, Nguyễn Duy Phương, chief investment officer at DG Capital, warned that prolonged tensions in the Middle East could push energy and input costs higher, potentially reviving inflationary pressures and leading to higher interest rates.

In such a scenario, sectors sensitive to fuel costs, such as airlines and tourism, could face pressure, while oil and gas services, petroleum retailers and shipping firms may benefit from rising energy prices.

“If inflation returns and interest rates rise sharply as they did in 2022, the stock market will become less attractive,” Phương said. — BIZHUB/VNS