VN-Index drops over 24 points on strong selling force

VN-Index drops over 24 points on strong selling force

Also weighing on the market, foreign investors were active today but leaned towards net selling, with a value exceeding VNĐ1.75 trillion on the two main bourses.

A bank teller talks to a customer at HDBank's transaction office. Shares of the bank plummeted nearly 4 per cent on Monday, contributing to the market's losses. VNA/VNS Photo

The stock market dipped on Monday as major stocks faced strong selling pressure, while foreign investors continued to withdraw large amounts from two main exchanges.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index closed the trading day at 1,634.45 points, down 24.17 points, or 1.46 per cent.

During the session, the index even dropped nearly 40 points. However, buying interest in certain stocks helped narrow the decline as the day progressed.

The breadth on the southern bourse remained in the negative territory as the decliners outnumbered gainers by 262 to 72. Liquidity, however, increased by 22.6 per cent from the previous session to nearly VNĐ35.8 trillion (US$1.4 billion).

The VN30-Index, which tracks the 30 biggest stocks on HoSE, also declined nearly 40 points, or 2.15 per cent, to 1,819.6 points.

Notably, 27 stocks went down, while two ticked up and one ended flat.

In the large-cap sector, several bank stocks experienced significant drops, such as HDBank (HDB), which fell by 3.97 per cent, VPBank (VPB) by 2.96 per cent, Techcombank (TCB) by 2.34 per cent and Vietinbank (CTG) by 3.71 per cent.

The securities sector faced similar challenges, with SSI Securities Corporation (SSI) falling 2.6 per cent, VNDirect Securities Company (VND) down 2.42 per cent and Ho Chi Minh City Securities Corporation (HCM) plunging 2.25 per cent.

The real estate sector also saw an average decline of 1.7 per cent, primarily due to the Vingroup ecosystem. Vinhomes (VHM) and Vingroup (VIC) contributed nearly five points to the VN-Index's drop.

Despite the overall decline, there were bright spots, as some real estate stocks managed to rise. Phat Dat Real Estate Development JSC (PDR) gained 2.13 per cent, DIC Group (DIG) increased by 1.22 per cent and GEO Group (CEO) rose by 3.27 per cent, continuing their recovery from the previous week, supported by net buying from foreign investors.

The HNX-Index on the Hanoi Stock Exchange (HNX) decreased by 2.01 points, or 0.73 per cent, to 274.23 points.

Also weighing on the market, foreign investors were active during the session but leaned towards net selling, with a value exceeding VNĐ1.75 trillion on the two main bourses.

Experts from Vietcombank Securities (VCBS) indicated that the index representing HoSE was currently in a phase of searching for momentum and balancing supply and demand. They anticipated that the VN-Index might move sideways within a 30-point range moving forward.

Previously, analysts from Yuanta Vietnam had predicted a potential recovery for the VN-Index earlier this week, but noted that they expected it to remain in a sideways trend afterwards, unless it surpasses the nearest resistance level of 1,686 points.

Based on technical analysis, ASEAN Securities has provided a similar forecast, identifying a resistance range of 1,670 to 1,680 points, which is 10 to 20 points higher than the current level. 

Bizhub