Market experiences sharp pullback as VN-Index nears 1,230 points
Market experiences sharp pullback as VN-Index nears 1,230 points
The stock market saw a significant decline on Thursday, with the VN-Index approaching the 1,230-point mark as foreign investors continued strong net selling.
The steel production line at Hòa Phát. Shares of manufacturer HPG, led the decliners on Thursday. — Photo Bnews.vn |
On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,231.89 points, down 14.15 points or 1.14 per cent.
Market breadth was negative, with 230 stocks declining, 78 advancing and 55 remaining unchanged. Liquidity increased to VNĐ16.1 trillion (US$634.1 million), up 5.2 per cent from the previous session.
The VN30-Index, which tracks the top 30 stocks by market capitalisation on the HoSE, also dropped 17.39 points, or 1.33 per cent, to close at 1,286.65 points. Within the VN30 basket, 23 stocks declined, five advanced, and two remained unchanged.
Leading the market’s downturn were manufacturing and banking stocks, with Hòa Phát Group JSC (HPG) recording the steepest decline, down 2.77 per cent and contributing more than 1.1 points to the VN-Index's overall decrease.
This was followed by losses from the Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG), which fell 2.18 per cent and the Bank for Investment and Development of Vietnam (BID), down 1.41 per cent.
The market’s losses were slightly offset by gains in a few major stocks, led by Investment And Industrial Development Corporation (BCM), which rose 1.03 per cent, adding nearly 0.2 points to the VN-Index.
Experts from Việt Dragon Securities observed: “The market’s recovery attempt failed, leading to further declines. Liquidity rose compared to the previous session, indicating increased supply, which continues to pressure the market.
"With a significant decrease, the VN-Index closed below the 1,265-point support level. The downward momentum remains, suggesting the market may continue to retreat in the next session and test the support zone between 1,240 – 1,250 points. This area could offer substantial support and may lead to a technical recovery in the near term.”
They advised: “Investors should monitor supply-demand dynamics in the support zone to gauge the market’s state. Short-term buying at favourable prices may be considered for selected stocks, but it’s essential to remain cautious and use any recovery as an opportunity to restructure portfolios, focusing on risk reduction.”
On the Hà Nội Stock Exchange (HNX), the HNX-Index also closed lower on Thursday, dropping 1.06 per cent to 223.82 points.
During the session, nearly VNĐ1.2 trillion worth of shares were traded, with a total volume of almost 63 million shares on the northern bourse.
Foreign investors continued their net-selling streak, with net sales amounting to over VNĐ941 billion on the HoSE.
