Market mixed, liquidity keeps falling

Market mixed, liquidity keeps falling

The stock market ended mixed on Wednesday, with the VN-Index extending rallies on the back of pillar stocks. However, liquidity kept falling and foreign investors were net sellers of significant amounts on the main exchange.

On the Ho Chi Minh Stock Exchange, the VN-Index increased 5.94 points, or 0.36 per cent, to 1,643.26 points. 

The index mirrored familiar patterns in the previous session, with a surge in bottom-fishing activity towards the end of the session helping the VN-Index recover for the second consecutive day. 

Breadth of the southern market, however, fell into negative territory as 171 stocks declined and 149 increased. Liquidity also decreased by 5.7 per cent from the previous trade to over VNĐ29.8 trillion (US$1.1 billion). 

The VN30-Index extended its gain, up 3.46 points, or 0.19 per cent, to 1,828.63 points. In the VN30 basket, 14 share ros while 13 went down and three stayed flat. 

Key contributors to the VN-Index's recovery included major stocks such as Vietcombank (VCB), Vingroup (VIC), Vietinbank (CTG), Binh Son Refining and Petrochemical Company Limited (BSR), Techcombank (TCB), MBBank (MBB) and Vinhomes (VHM). 

Among them, VCB was the biggest contributor. Shares of the lender surged nearly 1.4 per cent, adding nearly 1.8 points to the VN-Index. 

Meanwhile, the real estate sector continued to struggle, with most stocks in this group declining. 

Notable declines included Novaland (NVL), which fell 2.77 per cent, DIC Group (DIG), down 2.89 per cent, and CEO Group (CEO), down 1.66 per cent. 

The securities sector also moved into the negative zone, with Viet Dragon Securities (VDS) down 2.49 per cent, Vietcap Securities (VCI) down 2.23 per cent and MBBank Securities (MBS) down 1.88 per cent. Overall, this sector faced pressure as investors remained cautious.

On the Hanoi Stock Exchange (HNX), the HNX-Index fell slightly by 0.22 points to 274.6 points. 

Saigon - Hanoi Securities (SHS) said that after a significant rally or when the market reaches historical highs, it typically enters a correction phase to consolidate and reassess the previously surpassed peak levels. 

Consequently, in September and through the end of the year, stocks may face pressure to retest the highs of 2022.

SHS suggests that starting in September, the market will encounter several obstacles, primarily due to the impact of countervailing taxes on companies, which will be reflected in third-quarter earnings. 

Following a notable surge in credit growth during the second quarter, the rate of credit growth may slow in the third and fourth quarters compared to the same period in previous years, particularly as the year draws to a close.

Additionally, concerns surrounding exchange rates and rising inflation are likely to weigh on the market.

Adding pressure, foreign investors continued their selling spree on the HoSE for the second consecutive session, totalling over VNĐ2.9 trillion. 

Bizhub