Market declines on Wednesday as liquidity also drops

Market declines on Wednesday as liquidity also drops

Trading liquidity fell to VNĐ18.8 trillion (approximately US$734.9 million), down 16.1 per cent from the previous session.

A VietinBank transaction office in Hà Nội. The bank's CTG shares declined on Wednesday, contributing to the VN-Index falling below the 1,330-point mark. — VNA/VNS Photo

Việt Nam’s stock market declined on Wednesday after two consecutive sessions of gains earlier in the week, with the VN-Index falling below the 1,330-point threshold, with liquidity also contracting. Foreign investors extended their net-selling streak for a seventh straight session.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index dropped 5.83 points, or 0.44 per cent, to close at 1,326.09 points.

Market breadth remained negative, with 187 declining stocks compared to 120 gainers, while 54 remained unchanged. Trading liquidity fell to VNĐ18.8 trillion (approximately US$734.9 million), down 16.1 per cent from the previous session.

The VN30 Index, which tracks the 30 largest listed stocks by market capitalisation, also slipped by 7.32 points, or 0.53 per cent, to 1,381.47 points. Within the VN30 basket, 19 stocks declined, seven gained, and four remained unchanged. 

Losses in key banking and technology stocks largely drove the market downturn. FPT Corporation (FPT) recorded the sharpest decline, falling by 2.77 per cent and erasing over 1.2 points from the VN-Index. VietinBank (CTG) lost 1.3 per cent, while Vietcombank (VCB) dropped 0.6 per cent. 

On the positive side, some large-cap stocks helped cushion the fall. Hòa Phát Group (HPG) led the market rebound with a gain of 1.29 per cent, contributing nearly 0.6 points to the VN-Index. Techcombank (TCB) rose 0.36 per cent, while PV Gas (GAS) added 0.45 per cent.

According to analysts at Saigon - Hanoi Securities (SHS): “In the short term, the total market capitalisation stands at approximately US$300 billion, equivalent to 63 per cent of the country’s 2024 GDP. This is not considered an attractive valuation zone for significantly increasing stock exposure, especially after the VN-Index’s strong rally from 1,220 points to around 1,350 points. 

“As a result, the market remains highly segmented, with capital rotating among different sectors over short cycles. Growth expectations should be based on corporate outlooks and Q1 earnings results. Priority should be given to fundamentally sound stocks with promising earnings growth. Prominent sectors expected to post positive results in Q1 2025 include livestock, banking, securities, rubber, and industrial parks.

“Investors are advised to maintain a balanced portfolio. Investment strategies should focus on fundamentally strong, leading stocks within key strategic sectors that align with Việt Nam’s long-term growth trajectory.”

On the Hà Nội Stock Exchange (HNX), the HNX-Index also declined, falling by 1.32 per cent to 241.33 points. Trading value on the northern bourse reached over VNĐ1.2 trillion, with more than 72 million shares traded.

Foreign investors remained net sellers, offloading shares worth over VNĐ512 billion on the HoSE and over VNĐ10 billion on the HNX. 

Bizhub