Indices fall on rising profit-taking pressure

Indices fall on rising profit-taking pressure

Also pressured the market, foreign investor extended their heavy net selling, marking the tenth consecutive session of capital withdrawals from the Vietnamese market.

A transaction office of MBBank. Shares of the lender dropped over 1.8 per cent on Tuesday, weighing on the market's downturn. —Photo vietnamplus.vn

Benchmark indices finished lower on Tuesday due to profit-taking activities after adding nearly 50 points to the VN-Index.

Despite active trading, market participants exhibited greater caution as the VN-Index approached a critical resistance level around 1,690 points.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index fell by 10.2 points, or 0.6 per cent, to 1,685.3 points. It gained nearly 50 points on Monday. 

The market’s breadth was negative as 247 stocks declined while 77 inched higher. Liquidity also decreased by 20.5 per cent from the previous session to over VNĐ25.6 trillion (US$972.1 million).

The VN30-Index also dipped 9.32 points, or 0.49 per cent, to 1,909.65 points. Twenty one ticker symbols in the VN30 basket went down, while seven increased and two stayed flat. 

The banking sector faced notable pressure, with many major players experiencing declines. 

Shares of MBBank (MBB), Sacombank (STB), VPBank (VPB), Vietinbank (CTG), Techcombank (TCB) and HDBank (HDB) fell in a range of 0.6 - 2.2 per cent. 

In the real estate industry, selling pressure intensified, with several large-cap stocks dropping significantly. DIC Group (DIG) fell by 4.13 per cent, Dat Xanh Group (DXG) by 3.06 per cent, CEO Group (CEO) by 3.94 per cent, Kinh Bac City Development Holding Corporation (KBC) by 2.78 per cent and Novaland (NVL) by 2.53 per cent.

Nonetheless, leading companies such as Vinhomes (VHM), Vingroup (VIC) and Vincom Retail (VRE) held steady, helping to prevent a sharper decline in the VN-Index.

Amid widespread selling force, technology, consumer and materials stocks emerged as rare bright spots. 

Vinpearl JSC (VPL) surged to its ceiling price, while Mobile World Investment Corporation (MWG) increased by 0.52 per cent and FPT Corporation (FPT) ended flat, reflecting investor optimism in sectors benefiting from domestic consumption and digital transformation. 

The HNX-Index on the Hanoi Stock Exchange (HNX) also ended lower at 272.87 points, down 1.82 points, or 0.66 per cent. 

Also pressured the market, foreign investor extended their heavy net selling, marking the tenth consecutive session of capital withdrawals from the Vietnamese market.

They net sold over VNĐ1.3 trillion on the HoSE and VNĐ36.7 billion on HNX. 

Analysts suggest that today's decline represents a technical adjustment following a period of strong gains rather than a reversal of the upward trend. The high level of liquidity and the ongoing rotation of domestic capital among various sectors indicate that investor confidence in the market remains intact.

Despite persistent net selling by foreign investors, experts believe that domestic capital is sufficient to maintain balance, especially with the upcoming third-quarter earnings announcements expected to provide support for the index in the coming sessions.

Currently, the VN-Index hovers around the 1,680 - 1,690 point range, which is a crucial resistance level. If domestic demand continues and macroeconomic conditions remain stable, the likelihood of the market rebounding soon is considered high. 

Bizhub