Market up, but selling force pares gains

Market up, but selling force pares gains

Liquidity was mostly unchanged from the previous session, hovering near VNĐ22 trillion (US$860.4 million).

Bank tellers perform transactions at a Vietcombank office. The lender's shares were up nearly 3.1 per cent on Wednesday, leading the market's uptrend. — Photo vietnamplus.vn

Benchmark indices edged higher on Wednesday, boosted by gains in pillar stocks. However, foreign investors continued their net-selling spree across the two main exchanges. 

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed the day at 1,334.41 points, up 1.87 points or 0.14 per cent. This marked its fifth daily gain in a row. 

However, market breadth fell into negative territory, with decliners outnumbering gainers 179 to 128. Liquidity was mostly unchanged from the previous session, hovering near VNĐ22 trillion (US$860.4 million).

The tracker of the 30 biggest stocks, the VN30-Index, declined slightly by 1.18 points, or 0.08 per cent, to 1,392.39 points. In the VN30 basket, 19 stocks declined while ten ticked higher and one ended flat. 

Data compiled by financial website vietstock.vn showed that Vietcombank (VCB), Vinhomes (VHM) and Vingroup (VIC) were the top three contributors to the market’s gains. The three ticker symbols rose 3.09 per cent, 3.19 per cent and 1.7 per cent, respectively, contributing over 5 points to the index. 

Many securities stocks also posted impressive performances, with VNDirect Securities Corporation (VND) surging 5.23 per cent, VIX Securities Company (VIX) up 4.2 per cent, and Saigon - Hanoi Securities JSC (SHS) rising 2.74 per cent.

The index pared gains due to strong selling pressure, with BIDV (BID) posting the biggest loss. Shares of the lender dropped 1.21 per cent. 

TPS Research sees a 55 per cent probability that the VN-Index will trade sideways in the 1,300 – 1,325 range, suggesting that the market needs a breather for new buyers to absorb selling pressure from profit-taking. 

If this buying momentum is strong enough, the index could stabilise above 1,300 points throughout this consolidation phase.

The second scenario, with a 25 per cent probability, anticipates a pullback to 1,270 points, forming a triangle pattern before resuming its uptrend toward 1,375 points.

The least likely scenario, with just a 20 per cent probability, forecasts that the index will rally directly to 1,375 points, reaching the theoretical triangle pattern target without a pullback.

TPS Research advises a trading strategy focused on buying during corrections rather than chasing prices at higher levels.

On the Hà Nội Stock Exchange (HNX), the HNX-Index also finished higher at 241.87 points, up 1.29 points or 0.54 per cent. 

During the session, over 75 million shares worth more than VNĐ1.3 trillion were traded on the northern bourse. 

Meanwhile, foreign investors extended their net selling streak after withdrawing nearly VNĐ885 billion across the two exchanges. 

Bizhub