VN-Index maintains gains despite profit-taking pressure

VN-Index maintains gains despite profit-taking pressure

Market breadth was negative, with 259 decliners against only 83 advancers.

VinUniversity in Hà Nội. Vingroup stocks helped lift the VN-Index further on Wednesday. — Photo Vietnamplus.vn

The stock market came under heavy selling pressure on Wednesday, with many shares reversing course. However, the VN-Index managed to remain in positive territory thanks to the strong performance of Vingroup and banking stocks.

In the morning session, the market witnessed an abrupt wave of massive sell-offs, at one point erasing nearly 40 points, or 2.39 per cent, with enormous liquidity. Yet, during the afternoon session, the market gradually recovered, allowing the VN-Index to close higher.

At the end of trading, the VN-Index on the Ho Chi Minh Stock Exchange rose 10.16 points, or 0.61 per cent, to 1,664.36 points.

Market breadth was negative, with 259 decliners against only 83 advancers. Liquidity surged by 25 per cent compared to the previous session, reaching VNĐ68 trillion (around US$2.6 billion), the highest level in August.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation and liquidity, gained 18 points, or 0.99 per cent, to reach 1,828.46 points. Within the basket, 17 stocks declined, 12 advanced and one closed flat.

Vingroup led the rally, with Vingroup Joint Stock Company (VIC) and Vinhomes JSC (VHM) climbing 5.08 and 5.43 per cent, respectively. Together, these two stocks contributed more than 10 points to the VN-Index.

Another notable gainer was Vietnam Prosperity Joint Stock Commercial Bank (VPB), which hit its ceiling price for the third time in the last five sessions.

On the downside, several large-cap stocks faced strong selling pressure and weighed on the market. Vietcombank (VCB), Hòa Phát Group Joint Stock Company (HPG) and FPT Corporation (FPT) were the top decliners, dropping 1.87, 2.66 and 2.59 per cent, respectively.

Director of Retail Research at Yuanta Vietnam Securities Nguyễn Thế Minh, noted that historically, the VN-Index has averaged a 1 per cent gain in the second half of August, with a probability of more than 60 per cent. However, he added that the VN30-Index tends to decline slightly during this period, reflecting limited volatility in the stock market before it enters the more challenging September–October phase.

“The sentiment indicator for the VN-Index continues to trend downward, showing that investors are cautious as the recent upward momentum has largely relied on financial stocks. Short-term risks are therefore rising,” Minh said.

Analysts at Kafi Securities commented that the VN-Index is testing the 1,660–1,670 point range and may face volatility at higher levels. The 1,625-point mark is considered a crucial threshold for monitoring trends and managing portfolio risks.

In terms of trading strategy, investors are advised to maintain moderate exposure, focusing on stocks showing strong capital inflows. At the same time, they should avoid chasing rising prices and take profits flexibly as the index approaches resistance levels.

On the northern bourse, the HNX-Index fell 2.72 points, or 0.95 per cent, to 283.73 points. Total trading value on the exchange reached nearly VNĐ5 trillion, equivalent to more than 220 million shares. 

Bizhub