Shares end the week in the red on selling pressure
Shares end the week in the red on selling pressure
The Vietnamese stock market ended the week on a negative note due to a sudden surge in selling pressure, particularly in the real estate sector.
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On the Ho Chi Minh Stock Exchange, the VN-Index decreased for a third day in a row, down 1.07 per cent to close Friday at 1,052.89 points. The southern market’s index had lost 1.5 per cent this week.
On the Ha Noi Stock Exchange, the HNX-Index also closed at its lowest points of the day, down 1.23 per cent to 207.25 points.
The market breadth was negative with 423 shares losing value on both exchanges, only 152 gaining and 243 closing flat.
The banking sector's largest loser was Techcombank (TCB) with a 4.3 per cent drop, while BIDV (BID), Vietinbank (CTG) and Military Bank (MBB) all fell over 1 per cent.
Meanwhile, the rubber industry witnessed the most significant decline, with the industry’s average decrease of 3.13 per cent, according to data on vietstock.vn. Da Nang Rubber (DRC) fell nearly 4 per cent, Sao Vang Rubber (SRC) decreased by 4.5 per cent and The Southern Rubber (CSM) dropped by 1.4 per cent.
The real estate industry also experienced a steep decline, with numerous stocks falling to the floor, such as Kinh Bac City Development Holding (KBC), Becamex Infrastructure Development (IJC), Binh Duong Trade and Development (TDC), Sai Gon Thuong Tin Real Estaet (SCR), Tu Liem Urban Development (NTL), Ba Ria Vung Tau House Development (HDC), Dat Xanh Group (DXG) and Development Investment Group (DIG).
Despite the downtrend, liquidity increased in both volume and value, totaling nearly 899 million shares worth VND14.9 trillion (US$632 million) being traded in the two markets. This represented increases of 18 per cent in volume and 17 per cent in value compared to the previous session.
According to Viet Dragon Securities, it is expected that at the support level of 1,060 points of the VN-Index, the market can still receive support to balance in the next session.
“At the same time, the market's exploration will continue in the near future before there are more specific signals,” Phuong Nguyen, a market analyst at Viet Dragon Securities Co., wrote in a note.
Phuong suggested investors observe supply and demand movements and avoid overbought status, while at the same time taking advantage of the market's recovery to take short-term profits and minimise risks for the portfolio.
Foreign investors remained net sellers, offloading shares worth a net sell value of nearly VND232 billion, marking their seventh consecutive net selling session.
