Profit-taking pressure rises as market liquidity declines

Profit-taking pressure rises as market liquidity declines

The stock market has entered a consolidation phase, after several turbulent sessions, with the VN-Index fluctuating within a tight range of under ten points in the morning — a notable change from the recent volatility.

Customers conduct transactions at Bảo Việt Securities Company. — VNA/VNS Photo

 The stock market shifted swiftly into a state of consolidation on Wednesday following a series of volatile sessions, with the VN-Index moving in a narrow range of less than ten points in the morning — a sharp contrast to previous days.

Despite the lack of momentum, the market remained relatively stable, particularly as trading liquidity on both exchanges dropped by over 40 per cent, compared to the morning session on Tuesday.

At the close of Wednesday’s session, the VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) declined by 17.49 points, or 1.42 per cent, to 1,210.3 points.

Market breadth tilted clearly towards the sellers, with 207 stocks falling, compared to just 119 gainers. Total trading value fell by more than 19 per cent from the previous session, settling at around VNĐ19.4 trillion (US$751 million).

The VN30-Index, which tracks the 30 largest stocks by market capitalisation, also lost 17.51 points, or 1.34 per cent, to close at 1,293.25 points. Within this basket, only eight stocks advanced, while 22 declined.

Leading the decline were large-cap blue chips. FPT Corporation (FPT) hit the daily limit, plunging 6.98 per cent and erasing nearly 2.8 points from the VN-Index alone. Other major contributors to the market's downturn included Vingroup (VIC), which dropped 3.96 per cent, Vietcombank (VCB), down 1.17 per cent and Vinhomes (VHM), which lost 1.74 per cent.

Analysts from Saigon – Hanoi Securities JSC (SHS) noted that the VN-Index faced selling pressure near the resistance zone around 1,250 points, as many high-priced buy positions from April 11 were delivered to investors’ accounts and turned into losses.

“In the short term, the VN-Index continues to trend downward beneath the 1,250–1,270 resistance zone, with key psychological support remaining around 1,200 points. This level also corresponds to the market’s 2018 high and the lowest point recorded in November 2024,” they said.

“Although many stocks still appear relatively cheap based on company fundamentals, the short-term outlook remains uncertain. Risks currently outweigh opportunities, particularly for sectors under tariff pressure. Investors with high exposure and margin positions should consider rebalancing their portfolios and prioritising risk management. Accumulating new positions should be deferred until the market stabilises.”

SHS also recommended that investors maintain a balanced allocation and focus on fundamentally strong stocks in strategic sectors that can benefit from broader economic growth.

On the Hà Nội Stock Exchange (HNX), the HNX-Index edged down by 0.83 points, or 0.39 per cent, to 209.41 points.

Foreign investors were net sellers on Wednesday, offloading more than VNĐ272 billion worth of shares on the HoSE. 

Bizhub