• The Vn-Index sustained its growth momentum in January, with state-owned enterprises serving as the key catalyst. State sector development and anticipated SOE divestments are set to lead the market in January.

• The VN-Index edged up 2.5% in January, marked by a divergence across sectors. State-owned enterprises saw positive momentum on expectations of benefiting from the Politburo’s Resolution 79.

• The average daily trading value across the three exchanges surged to VND 38.6 trillion in January. Cash flow shifted towards large-caps, with a notable increase in SOEs within the Banking, Utilities, and Oil & Gas sectors.

• Foreign investors net sold VND 6,708 billion in January.

• Following a three-month winning streak, the market rally may encounter headwinds in February. While the index might remain relatively stable, sharp volatility could surface as blue-chips retreat and consolidate after an overheated period. Furthermore, elevated margin balances coupled with the extended Tet holiday could result in more defensive cash flows. Thus, the key theme for February is selectivity, prioritizing policy-driven sectors and stocks with solid earnings backdrops or attractive entry points after recent pullbacks.