Market struggles on rising selling force

Market struggles on rising selling force

Benchmark indices extended losses on Wednesday as rising selling pressure weighed on pillar stocks across all sectors.

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) decreased by 9.93 points, or 0.59 per cent, ending the day at 1,670.97 points.

Despite high trading volume, with over 1.07 billion shares changing hands and a transaction value of approximately VNĐ32.48 trillion (US$1.2 billion), the market struggled under the weight of selling pressure.

The market's breadth stayed in the negative territory, with the number of decliners surpassing that of gainers by 201 to 119.

The VN30-Index also closed lower at 1,868.85 points, down 6.54 points, or 0.35 per cent. Nineteen stocks in the VN30 basket fell while ten ticked up and one ended flat.

The banking sector experienced significant declines, contributing heavily to the index's downturn.

Notable losses included BIDV (BID), which fell 2.50 per cent, Vietinbank (CTG) dropped by 2.10 per cent and MBBank (MBB) down 1.82 per cent. Other banks, such as HDBank (HDB) and Asia Commercial Joint Stock Bank (ACB), also saw declines, further dragging the index lower.

Securities, manufacturing and realty stocks also witnessed big losses, such as SSI Securities Corporation (SSI) plunged 2.4 per cent, VIX Securities (VIX) dipped nearly 4 per cent, Hoa Phat Group (HPG) down 2.5 per cent, DIC Group (DIG) and Masan Group (MSN) down 3 per cent.

However, the losses were capped by gains in some ticker symbols, which were led by Vingroup (VIC). Shares of the property developer soared 6 per cent today, cushioning the market's downtrend. It was followed by FPT Corporation (FPT) and PV Gas (GAS).

The HNX-Index on the Hanoi Stock Exchange (HNX) also dropped by 1.35 points, or 0.48 per cent, to 277.63 points.

Today's trading session reflects a cautious investor sentiment, particularly as the market approaches a strong resistance zone of 1,695-1,710 points, which corresponds to the previous highs from August and early September.

Experts from ABS Research and Vietnam Construction Securities said that low liquidity, which was below the average of the past 20 sessions, suggests that capital is not yet ready to push aggressively, especially ahead of the upcoming derivatives contract expiration. Increased selling pressure was observed towards the end of the morning session, but demand from mid-cap stocks helped the VN-Index recover slightly before closing.

Foreign investors returned to being net sellers on the southern market after net selling nearly VNĐ123 billion on HoSE. However, they net bought VNĐ18 billion on HNX.

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