Banking stocks drag market to steepest drop in four weeks
Banking stocks drag market to steepest drop in four weeks
The stock market faced increased selling pressure on Tuesday, with major stocks recording significant losses, particularly in the banking sector, while foreign investors continued their net selling spree.
A Vietcombank transaction room. Shares of the lender led the decliners on Tuesday. — VNA/VNS Photo |
The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended the day at 1,255.23 points, down 12.5 points, or 0.99 per cent.
The market’s breadth was negative, with 240 stocks declining, 79 increasing and 51 ending flat. Liquidity improved significantly to VNĐ15.6 trillion (US$636.7 million), marking a 33.33 per cent rise compared to the previous session.
The VN30-Index, which tracks the top 30 largest stocks by market capitalisation on the HoSE, also saw a drop of 13.09 points, or one per cent, to close at 1,294.06 points. In the VN30 basket, the number of decliners outnumbered gainers 24 to five, with one stock remaining flat.
Large-cap stocks in the banking and manufacturing sectors led the market’s decline. The Bank for Foreign Trade of Vietnam (VCB) posted the biggest drop in market capitalisation, falling 1.33 per cent, which alone contributed to a decrease of more than 1.62 points in the VN-Index.
This was followed by the Bank for Investment and Development of Vietnam (BID), which saw a drop of 1.12 per cent, reducing the VN-Index by 0.76 points.
Manufacturing stocks also performed badly, with shares of Hòa Phát Group JSC (HPG) and Vietnam Rubber Group - Joint Stock Company (GVR) falling by 1.76 per cent and 1.16 per cent, respectively.
According to experts from Viet Dragon Securities, while liquidity increased, it remained at a relatively low level, suggesting that the supply is currently limited and not placing significant pressure on the market.
Nonetheless, there is still overall caution in the market during upward movements, due to the lingering effects of the recent sharp decline. The 1,250-point level is expected to continue presenting supply-side pressure in the near future and the risk of further downturns will persist. Investors are advised to remain cautious amid ongoing market volatility, avoid chasing rising prices and consider taking profits or restructuring portfolios during market recoveries to minimise risk.
On the Hà Nội Stock Exchange (HNX), the index also closed lower on Tuesday, down by 0.76 per cent to 231.69 points.
More than VNĐ1.1 trillion worth of shares were traded, equating to a trading volume of over 55 million shares on the northern bourse.
Foreign investors continued their selling trend, with net sales totalling over VNĐ387.43 billion on the HoSE.
