Cash flow narrows to small-cap stocks as liquidity drops significantly
Cash flow narrows to small-cap stocks as liquidity drops significantly
Market breadth leaned slightly negative, with 168 stocks declining against 143 advancing.
A Vietcombank transaction office in Thái Nguyên Province. The bank's VCB shares led the market's decliners on Thursday. — Photo baothainguyen.vn |
The market showed no signs of a breakthrough on Thursday, with the VN-Index continuing to hover above the 1,340-point mark, but failing to gain any upward momentum. The primary drag came from adjustments among major blue-chip stocks, while total cash flow significantly declined, limiting opportunities to a handful of mid and small-cap shares.
At the opening of the morning session, the VN-Index posted a modest gain, but that only lasted for the first 30 minutes. The rest of the session saw the index slipping, losing 4.28 points, or 0.32 per cent. At one point, the index fell to as low as 1,338.31 points, before partially recovering in the afternoon.
By the end of the trading day, the VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) had dropped 3.65 points, or 0.27 per cent, to 1,342.09 points.
Market breadth leaned slightly negative, with 168 stocks declining against 143 advancing. However, liquidity plunged 18.4 per cent from the previous session, to VNĐ19.1 trillion (approximately $730.2 million), equivalent to a trading volume of nearly 820 million shares on the HoSE.
The VN30-Index, which tracks the 30 largest listed firms by market capitalisation, also shed 2.9 points, or 0.2 per cent, to 1,432.38. Within this basket, 20 stocks declined, while ten gained.
Among the top losers were Vietcombank (VCB), down 0.53 per cent, PetroVietnam Gas JSC (GAS), off 1.54 per cent and Techcombank (TCB), losing 0.8 per cent.
On the upside, Masan Group (MSN) rose 2.65 per cent and Refrigeration Electrical Engineering Corporation (REE) hit the daily ceiling with a 6.92 per cent surge, together contributing nearly 1.2 points to the benchmark index.
Analysts at Saigon-Hanoi Securities (SHS) commented: “In the short term, the VN-Index continues to trade above its nearest support at 1,330 points, with stronger support seen at around 1,300 points, corresponding to the highest levels of 2024. The index has surpassed the March 2025 peak of 1,343 points, and if it successfully retests this level, the target range could be extended to 1,370–1,380 points, in line with the uptrend connecting previous highs from 2023, 2024, and March 2025.”
They added: “Market movements remain rotational and fast-paced. Short-term opportunities lie within industry groups and specific VN30 stocks that have not surged significantly and are in solid accumulation phases, with potential to return to their highs seen in March 2025.
"Cash flow has improved notably in the small and mid-cap segments, offering better conditions for short-term trades. However, SHS advised cautious and selective disbursement based on growth potential, along with strict risk management at current levels."
They also recommended that investors maintain balanced portfolios and focus on fundamentally strong, leading stocks in strategic, high-growth sectors of the economy.
On the Hà Nội Stock Exchange (HNX), the HNX-Index posted a modest gain of 0.36 points, or 0.16 per cent, to 231.19 points. The total trading value on the northern bourse reached nearly VND 1.9 trillion, with over 110 million shares traded.
- 22:01 05/06/2025
