Market reverses as VN-Index falls below 1,500 points

Market reverses as VN-Index falls below 1,500 points

Selling pressure quickly took over, resulting in a significant downturn after the VN-Index hit a record high.

Investors watch stock movements on a digital board at a Viet Dragon Securities trading office. Shares of the securities firm fell 7 per cent on Tuesday, weighing on the market's downtrend. — Photo vdsc.com.vn

The stock market dipped on Tuesday, reversing its recent rallies due to rising selling pressure, while foreign investors also net sold a significant amount on the southern bourse. 

After five consecutive days of gains, the market opened on a high note in the morning session, with the VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rising nearly seven points early on.

However, selling pressure quickly took over, resulting in a significant downturn. At one point, the index dropped by more than 28 points, retreating close to the 1,529-point mark before making a slight recovery. 

By the end of the day, it had dropped 64.01 points, or 4.11 per cent, to 1,493.41 points. 

The market's breadth was negative, with up to 314 ticker symbols declining, while only 41 increased. Liquidity soared to nearly VNĐ72 trillion (US$2.7 billion), equivalent to a trading volume of 2.8 billion stocks. 

The 30 biggest stocks tracker, the VN30-Index, also finished lower at 1,621.29 points, down 74.34 points, or 4.38 per cent. Notably, all stocks in the VN30 basket performed poorly, with four hitting their floor prices. 

Profit-taking was particularly concentrated in sectors that had recently seen rapid gains, especially in securities, real estate and banking — key contributors to the VN-Index's previous rise.

In the securities sector, stocks like Viet Dragon Securities Corporation (VDS), SSI Securities Corporation (SSI), Vietinbank Securities (CTS), VNDirect Securities (VND), Ho Chi Minh City Securities (HCM) and Vietcap Securities JSC (VCI) all logged the maximum daily loss of 7 per cent. 

The real estate sector also faced widespread declines, with Dat Xanh Group (DXG), Dat Xanh Real Estate Services JSC (DXS), Novaland (NVL) and Phuc Dat Land JSC dropping 7 per cent, while big names like Vinhomes and Vingroup (VIC) fell by over 2 per cent. 

Amid this downturn, Sai Gon Thuong Tin Real Estate JSC (SCR) emerged as a rare bright spot in the sector, nearly hitting its ceiling price and becoming the strongest performer in real estate.

In the banking sector, only Sacombank (STB) and Vietnam International Commercial Joint Stock Bank (VIB) managed to maintain positive territory, while the rest fell sharply by 3-5 per cent. 

However, liquidity within this group surged, surpassing the average of the past 20 sessions, indicating intense competition between buying and selling at new price levels.

Another significant factor contributing to market pressure was strong net selling by foreign investors. They net sold nearly VNĐ882.4 billion on the HoSE. 

Bizhub