Market falls slightly amid increased profit-taking pressure

Market falls slightly amid increased profit-taking pressure

Market breadth remained negative, with 190 declining stocks, 125 gainers and 51 unchanged.

An MBBank transaction office in Hà Nội. The lender's MBB shares led the gainers on a day when the market saw a slight decline. — Photo courtesy of MBBank

The stock market remained mixed on Thursday as the VN-Index recorded its third consecutive decline, with liquidity also decreasing while foreign investors continued their strong net selling, offloading more than US$50 million.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index fell by 0.7 points, or 0.05 per cent, closing at 1,323.93 points.

Market breadth remained negative, with 190 declining stocks, 125 gainers and 51 unchanged. Trading liquidity dropped to VNĐ19.7 trillion (approximately $770 million), marking a 19.3 per cent decline from the previous session.

Meanwhile, the VN30-Index, which tracks the 30 largest stocks by market capitalisation, rose slightly by 1.32 points, or 0.1 per cent, to settle at 1,378.95 points. Within the VN30 basket, 15 stocks declined, 12 advanced and three remained unchanged.

Leading the market’s decline was Tiên Phong Commercial Joint Stock Bank (TPB), which saw the sharpest drop, falling 5.3 per cent, erasing more than 0.5 points from the VN-Index. Vingroup Joint Stock Company (VIC) also fell by 0.77 per cent, while Investment And Industrial Development Corporation (BCM) declined 1.49 per cent.

Despite the overall market weakness, several large-cap banking stocks helped cushion the decline. Military Commercial Joint Stock Bank (MBB) led the gains, rising 1.68 per cent, contributing more than 0.6 points to the VN-Index.

It was followed by the Bank for Foreign Trade of Vietnam (VCB), which gained 0.45 per cent and Vietnam Technological and Commercial Joint Stock Bank (TCB), which advanced 0.73 per cent.

Market analysts at the Saigon - Hanoi Securities (SHS) noted that: "The market continues to face selling pressure, with investors restructuring their portfolios across multiple stocks after an eight-week rally. The VN-Index and VN30 are encountering strong resistance at 1,350–1,400 points, leading to a consolidation phase after an extended period of gains.

"In the short term, this is not an ideal price range for further investment. However, the market remains highly selective, with sectoral rotations occurring in the short term. Selling pressure has been particularly strong in the technology, telecommunications and mineral sectors, which have experienced significant price surges throughout 2024. Given the current correction, some stocks are approaching reasonable valuation levels and investors may consider monitoring their growth potential for possible accumulation.

"Investors should maintain a balanced portfolio, prioritising stocks with solid fundamentals, industry leadership, and strong growth potential."

On the Hà Nội Stock Exchange (HNX), the HNX-Index edged up by 0.2 per cent, closing at 245.77 points. Trading value on the northern bourse exceeded VNĐ1 trillion, with over 66 million shares changing hands.

Foreign investors continued their strong net-selling trend on Thursday, offloading shares worth over VNĐ1.4 trillion on the HoSE and over VNĐ13 billion on the HNX. 

Bizhub