Market mixed as VN-Index fails to break through key resistance level

Market mixed as VN-Index fails to break through key resistance level

At the close of trading on the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index edged down a marginal 0.01 point, remaining almost unchanged at 1,341.86 points compared to the previous session.

A VietinBank transaction office in District 11, HCM City. The lender's CTG shares led the decliners on Thursday. — Photo courtesy of VietinBank

Việt Nam’s stock market ended Thursday in mixed territory as the VN-Index once again failed to break past its previous peak, with liquidity declining slightly and foreign investors maintaining a net selling position.

The market opened on a positive note in the morning session, supported by news that a proposed tariff policy under former President Donald Trump had been blocked. The VN-Index briefly climbed to 1,348.31 points – matching Wednesday’s intra-day high.

However, the index soon lost momentum due to the underperformance of large-cap stocks, resulting in a gradual slide through most of the morning. Although the market saw a modest rebound in the afternoon, it was not enough to keep the VN-Index in positive territory.

At the close of trading on the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index edged down a marginal 0.01 point, remaining almost unchanged at 1,341.86 points compared to the previous session.

Market breadth was nearly balanced, with 163 gainers versus 162 decliners.

Liquidity on the southern bourse declined by 6.7 per cent from the previous session to VNĐ20.9 trillion (approximately US$803.3 million).

The VN30-Index, which tracks the 30 largest listed companies by market capitalisation, also fell slightly by 0.62 points, or 0.04 per cent, to close at 1,431.57. Within the basket, eight stocks advanced, 21 declined and one remained flat.

VietinBank (CTG) led the group of laggards, dropping 1.64 per cent and contributing nearly one point to the VN-Index’s decline. Other notable decliners included FPT Corporation (FPT), down 1.1 per cent and Vietnam Airlines JSC (HVN), down 1.39 per cent.

On the upside, several stocks provided support and helped limit the index’s losses. Vinhomes JSC (VHM) led the gainers with a 1.59 per cent increase – marking its ninth gain in the past ten sessions.

Other strong performers included Eximbank (EIB), which surged 5.29 per cent, Vincom Retail (VRE), up 3.56 per cent and Techcombank (TCB), which rose 0.98 per cent.

Analysts from SHS Securities said: “In the short term, the VN-Index continues to hold above its nearest support level at 1,320 points, with stronger support around 1,300 – the highest level recorded in 2024. This opens the possibility of breaking above the March 2024 peak of 1,343 points, similar to the VN30, amid ongoing improvements in market fundamentals.

“At present, many stocks remain reasonably priced in relation to their underlying business fundamentals. However, market performance is highly divergent. Short-term opportunities are largely driven by rotational recoveries to pre-correction levels, while others have faced heavy and sudden selling pressure after a strong run-up,” they added.

“The VN-Index is currently hovering around its previous resistance at 1,340 points, which is not considered an attractive zone for further accumulation. We recommend caution for new positions, suggesting investors wait for potential pullbacks towards the 1,300-point range. Stock selection should be prudent and based on earnings growth outlooks.”

On the Hà Nội Stock Exchange (HNX), the HNX-Index rose 0.33 per cent to 224.3 points. Total trading value reached VNĐ1.3 trillion, with more than 81 million shares changing hands. 

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