Market mixed as liquidity hits five-week low

Market mixed as liquidity hits five-week low

The VN-Index closed down 1.03 points, or 0.08 per cent, at 1,316.68 points.

An FPT Software office in Cần Thơ City. Technology group FPT’s shares led the gainers on Wednesday. — Photo fptsoftware.com

The momentum from Tuesday’s recovery quickly faded on Wednesday as investors held back, causing the VN-Index to once again miss the 1,320-point mark.

Liquidity slumped to its lowest level in five weeks, while foreign investors returned to modest net selling.

The VN-Index initially gained 5.8 points shortly after the opening bell, reaching a session high of 1,322.07 points. However, weak buying power quickly dragged the market into negative territory. The benchmark closed down 1.03 points, or 0.08 per cent, at 1,316.68 points.

Market breadth was relatively positive thanks to solid performances by mid- and small-cap stocks, with 157 gainers outnumbering 129 decliners. Matched order value fell sharply by 21.73 per cent from the previous session to VNĐ14.4 trillion (around US$554.1 million) — the lowest level recorded in five weeks.

The VN30-Index, which tracks the 30 largest listed companies by market capitalisation, inched up 0.33 points, or 0.02 per cent, to close at 1,405.15 points. Within the basket, 16 stocks declined, 11 advanced, and three ended flat.

Leading the downward drag were stocks in the Vingroup family. Vinhomes (VHM) and Vincom Retail (VRE) slipped by 0.69 per cent and 1.51 per cent, respectively, together shaving more than 1.32 points off the VN-Index.

On the other hand, gains in a few large-cap stocks helped curb the market's decline. FPT Corporation (FPT) led the gainers with a 1.9 per cent increase, contributing nearly 0.8 points to the index.

According to a market report from Viet Dragon Securities, while the market exhibited some recovery, it remains cautious and faces resistance around the 20-day moving average, approximately 1,323 points, which had previously served a key support level that was breached in the previous session. The decline in liquidity suggests that supply pressure is cooling, yet supporting cash flow remains hesitant.

Mixed signals in price movements have placed the market in a state of indecision. The recent downward pressure could continue to weigh on sentiment, but analysts believe the current dip is more of a technical correction, and the market may find support quickly if it retreats to the 1,290–1,300 point range.

If the decline is contained, further accumulation will be needed before the market can reclaim the 20-day moving average.

Viet Dragon analysts advised investors to “slow down and monitor supply-demand dynamics to assess the market's condition. Short-term profit-taking should be considered to lock in gains and maintain a balanced portfolio.”

“Investors should remain cautious and selective, focusing on short-term opportunities in stocks showing strong signals from key support zones or consolidating on a solid base,” they added.

On the Hà Nội Stock Exchange, the HNX-Index also edged down by 0.17 points, or 0.08 per cent, to 226.23 points. Total trading value reached VNĐ1.2 trillion, with nearly 70 million shares changing hands. 

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