Market falters as liquidity declines significantly.
Market falters as liquidity declines significantly.
Market breadth leaned negative, with 188 declining stocks, 101 advancing and 64 unchanged.
A VietinBank transaction office in Hà Nội. CTG shares of the bank led the decliners as the VN-Index dropped below the 1,230-point threshold. — Photo Baotintuc.vn |
The stock market retreated on Tuesday, pulling the VN-Index below the 1,230-point threshold, as liquidity dropped sharply and foreign investors maintained strong net-selling activity.
On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,229.07 points, down 6.58 points, or 0.53 per cent. Market breadth leaned negative, with 188 declining stocks, 101 advancing and 64 unchanged.
Trading liquidity fell sharply to approximately VNĐ8.5 trillion (US$334.6 million), representing a 29.75 per cent drop compared with the previous session.
The VN30-Index, which tracks the top 30 largest-cap stocks on the HoSE, also declined by 9.11 points, or 0.7 per cent, to 1,289.23 points. Within the VN30 basket, 20 stocks fell, seven advanced and three remained unchanged.
Blue chips led the market's decline. The Vietnam Joint Stock Commercial Bank For Industry And Trade (CTG) posted the steepest drop, falling 1.99 per cent and shaving nearly one point off the VN-Index.
Other notable decliners included the FPT Corporation (FPT), which lost 1.69 per cent, and the Bank for Investment and Development of Vietnam (BID), which fell by 0.76 per cent.
However, gains in select large-cap stocks partially offset broader losses. The PetroVietnam Gas Joint Stock Corporation (GAS) rose by 0.75 per cent, contributing 0.28 points to the VN-Index. Additionally, the Viet Nam National Petroleum Group (PLX) climbed 2.19 per cent, Bảo Việt Holdings (BVH) gained 2.63 per cent and Viglacera Corporation - JSC (VGC) advanced by 3.46 per cent.
Analysts from Việt Dragon Securities said: “The market's attempt to recover failed as it retreated within the range of 1,227–1,233 points, reflecting a cautious testing phase. The decline in liquidity compared to the previous session shows weak support from inflows, contributing to the market’s subdued performance.
“Although the market is currently supported around the 1,227-point level, the lacklustre momentum suggests that it may require more time to stabilise and retest the support zone around 1,230 points, marking the lowest level of January 2025. This zone is expected to provide some support in the near term.
“Investors should continue to monitor supply-demand dynamics to reassess the market. It is advisable to maintain portfolio weights at reasonable levels to mitigate risks. Short-term buying opportunities may arise if there are strong support signals from inflows, particularly in stocks showing resilience near or at key support levels.”
On the Hà Nội Stock Exchange (HNX), the HNX-Index also declined, closing at 218.27 points, down 1.35 points or 0.61 per cent. Trading value on the northern exchange surpassed VNĐ481 billion, with trading volume exceeding 32.9 million shares.
Foreign investors extended their net-selling streak, unloading shares valued at VNĐ629 billion on the HoSE and VNĐ26.7 billion on the HNX.
