Market extends decline as selling pressure mounts

Market extends decline as selling pressure mounts

In just two trading sessions, the market has shed almost 80 points from its recent peak, creating turbulence for many stocks that had shown stable upward trends.

A customer talks to a TPBank staff member at its office. The lender hit the floor prices on Monday, weighing on the market's downtrend. — Photo courtesy of the bank

The stock market continued to experience significant declines on Monday amid widespread selling pressure. 

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index dropped by 31.44 points, or 1.91 per cent, settling at 1,614.03 points. The index even lost up to 35 points earlier in the session. 

In just two trading sessions, the market has shed almost 80 points from its recent peak, creating turbulence for many stocks that had shown stable upward trends. 

Breadth of the market was negative, with 233 stocks declining while 100 inched higher. The liquidity on the southern exchange fell from the previous session but remained high at nearly VNĐ42.3 trillion (US$1.6 billion).

The 30 biggest stocks tracker, VN30-Index, also finished low at 1,783.12 points, down 30.9 points, or 1.7 per cent.

In the VN30 basket, the selling pressure was even more pronounced, with 23 stocks decreasing, five increasing and two remaining unchanged.

Among the VN30 stocks, two lenders, Vietnam International Commercial Joint Stock Bank (VIB) and TPBank (TPB), hit their floor prices. 

Additionally, 14 other stocks fell between 2 per cent and 6 per cent. 

Conversely, a few stocks managed to defy the trend. 

Vingroup (VIC) rose by 5.56 per cent, SSI Securities Corporation (SSI) by 2.52 per cent, Vietjet Aviation (VJC) by 1.79 per cent, PV Gas (GAS) by 1.03 per cent and Vinhomes (VHM) by 0.31 per cent. 

Notably, VIC and VJC were the only stocks to close higher than their morning prices, with VIC gaining an additional 1.79 per cent by the end of the session. This single stock contributed over 6.2 points to the VN-Index and 11.1 points to the VN30-Index, although its impact was limited in the face of widespread declines.

The strength of stocks like VIC and VHM was overshadowed by a significant sell-off in the banking sector, which was predominantly in the red. 

In addition to VIB and TPB, other banks, such as Orient Commercial Joint Stock Bank (OCB), Vietnam Maritime Commercial Joint Stock Bank (MSB) and Eximbank (EIB), also faced sharp declines. 

Among blue-chip stocks, VPBank (VPB) fell by 6.82 per cent, Asia Commercial Joint Stock Bank (ACB) by 5.92 per cent, Sahabank (SHB) by 5.51 per cent and BIDV (BID) by 5.2 per cent. The VNFin index, representing the financial sector on HoSE, plummeted by 4.4 per cent.

On the Hanoi Stock Exchange (HNX), the HNX-Index also experienced a decrease of 5.9 points, or 2.17 per cent, closing at 266.58 points.

Recent fluctuations in the Vietnamese stock market highlight the speculative nature of investor behaviour, characterised by a readiness to chase highs during periods of enthusiasm but quickly retreating at the first sign of negativity.

This trend has led to significant short-term losses for investors driven by FOMO (fear of missing out).

Foreign investors were net sellers on the market as they withdrew significant amounts from the two main exchanges. Of which, they net sold over VNĐ1.7 trillion on HoSE and VNĐ24.4 billion on HNX. 

Bizhub