VN-Index finishes higher despite rising selling force

VN-Index finishes higher despite rising selling force

Previously, many securities firms anticipated that the VN-Index would continue its upward trajectory, bolstered by positive capital flows, foreign investment and strong performances from major stocks.

A worker collecting latex at a rubber plantation of Vietnam Rubber Group. Shares of the rubber producer surged by 2.17 per cent on Monday, cushion the selling pressure. — VNA/VNS Photo

Profit-taking pressure weighed on the market in the first trading session of the week, however, benchmark indices still managed to finish higher on fresh capital inflows. 

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index closed up 12.66 points, or 0.87 per cent, reaching 1,470.42 points. This was its highest close since March 2022.

Breadth of the market was positive as 206 stocks increased while 117 went down. Liquidity was slightly lower the previous session, but remained high at over VNĐ31.4 trillion (US$1.2 billion).

The VN30-Index, tracking the 30 biggest stocks on HoSE, was also up 11.65 points, or 0.73 per cent, to 1,605.66 points. Eighteen ticker symbols in the VN30 basket ticked up, while 11 declined and one stayed flat. 

Opening the Monday's session, the VN-Index fell as many large-cap stocks reversed recent bullish course, with Vinhomes (VHM) experiencing a sharp drop of 2.05 per cent while Vietcombank (VCB) dipped 2.71 per cent. 

This simultaneous pressure on major stocks caused the VN-Index to fall rapidly, dropping 1.81 per cent in just 25 minutes. 

The profit-taking sentiment was understandable given the continuous market rise, with the VN-Index approaching the 1,500-point mark and many stocks showing good returns. 

Moreover, today’s profit-taking isn’t new. It’s merely the manifestation of fluctuations in major stocks that made the VN-Index's movements more pronounced.

In the afternoon trade, many stocks made significant recoveries, such as Becamex (BCM), which rebounded by 3.79 per cent from its low, Vietnam Rubber Group (GVR) soared by 3.37 per cent, Mobile World Investment Corporation (MWG) jumped 3.92 per cent and VHM climbed by 3.14 per cent. 

The VN-Index's gain was not solely due to the recovery of major stocks but also propelled by price recoveries in a majority of stocks. Statistics show that 38.1 per cent of stocks rebounded by at least 2 per cent from their lows.

Midcap stocks demonstrated the strongest performance, with an increase of 1.58 per cent. This segment included three stocks hitting their ceiling prices, including Dat Xanh Real Estate Services JSC (DXS), Hodeco (HDC) and Dat Xanh Group (DXG).

On the Hanoi Stock Exchange (HNX), the HNX-Index rose 0.8 points, or 0.33 per cent, to 239.61 points. During the session, over VNĐ2.27 trillion was poured into the northern bourse. 

Meanwhile, foreign investors saw a notable change, reducing purchases by about 20 per cent compared to the previous week while increasing sales by nearly 12 per cent. 

Today's net buying value on the HoSE diminished to just VNĐ130.3 billion, a sharp drop from the thousands of billions seen in previous sessions. However, they net sold VNĐ53.56 billion on HNX. 

Previously, many securities firms anticipated that the VN-Index would continue its upward trajectory, bolstered by positive capital flows, foreign investment and strong performances from major stocks. 

They noted that technical corrections could arise as the index approaches the significant resistance level of 1,480 points. 

Bizhub