Market pressured by heavy selling, VN-Index plunges nearly 70 points before paring losses

Market pressured by heavy selling, VN-Index plunges nearly 70 points before paring losses

The stock market witnessed a sharp decline on Monday, April 22, as selling pressure intensified, causing the VN-Index to plunge nearly 70 points during the afternoon session before trimming losses by the end of the day.

An investor monitors the stock market. — Photo baotintuc.vn

The VN-Index extended its downward trend immediately after the opening bell, with selling pressure mounting throughout the morning. By midday, the index had already fallen by 18 points, setting the stage for a more turbulent afternoon.

Investor sentiment deteriorated further after the lunch break. At around 1.30pm, the VN-Index dropped by as much as 69 points, falling below the 1,140-point mark and sparking concern across the market.

However, bargain-hunting at lower price levels helped recoup some losses. At the close of trading on the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index was down 9.94 points, or 0.82 per cent, to end at 1,197.13 points. Market breadth was significantly skewed to the downside, with 278 declining stocks compared to only 67 gainers.

Market liquidity surged as selling activity accelerated, with total trading value jumping by 83.33 per cent compared to the previous session to reach VNĐ34.1 trillion (US$1.3 billion). Trading volume also soared to 1.7 billion shares.

Despite the intense pressure, only 38 stocks hit their floor prices. Mobile World Investment Corporation (MWG) stood out as a rare bright spot, maintaining gains of over three per cent throughout the session. Similarly, Vietnam Airlines (HVN) rebounded strongly from near its floor price, finishing up 4.6 per cent.

In contrast to the previous session's net buying, foreign investors returned to net selling on Tuesday, offloading approximately VNĐ250 billion. The top five stocks facing the heaviest foreign selling included FPT, KBC, VNM, VHM and MSN.

Analysts at Saigon – Hanoi Securities (SHS) commented that the market is gradually stabilising after experiencing strong selling pressure, particularly in stocks affected by trade-related concerns.

“In the short term, many stocks are now trading below their book value following the recent sell-off. Valuations appear attractive for investors with low exposure, who may consider accumulating selectively or taking advantage of short-term opportunities to average down.”

However, SHS cautioned that risks in the short term continue to outweigh opportunities. “The market remains unpredictable. Risk management should be prioritised, especially for investors with high exposure who have not yet restructured their portfolios during the recent downturn.”

They added: “Investors should maintain a reasonable proportion of equity holdings and focus on stocks with strong fundamentals, leading positions in strategic industries and robust growth potential in the broader economy.”

Meanwhile, foreign investors returned to net buying by the close of the session, with purchases totalling over VNĐ520 billion on the HoSE and more than VNĐ20 billion on the HNX. 

Bizhub