Rising selling force weighs on market's sentiment

Rising selling force weighs on market's sentiment

Both benchmark indices ended lower today, while foreign investors continued to net sell a significant amount on the two main exchanges.

A transaction office of SSI Securities. Shares of the securities firm plunged over 1.9 per cent on Thursday, contributing to the market's downtrend. — Photo ssi.com.vn

The domestic market finished lower on Thursday as strong selling pressure emerged among large-cap stocks, while foreign investors continued to net sell a significant amount on the main exchange. 

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) fell by 12.34 points, or 0.74 per cent, to 1,652.71 points. 

The session began positively, with the VN-Index gaining over 14 points and nearing the 1,680 mark. However, this momentum quickly waned as stock prices cooled and selling pressure intensified, particularly in the real estate, securities, and steel sectors. 

This led the VN-Index to swiftly breach the critical 1,660-point level, maintaining a downward trend throughout the session.

The market’s breadth was negative as the number of losers surpassed that of winners by 243 to 84. Liquidity slightly increased from the previous trade to VNĐ22.6 trillion (US$858.4 million).

The VN30-Index also fell to 1,859.8 points, down 10.83 points, or 0.58 per cent. In the VN30 basket, 20 out of 30 stocks saw declines, with several large-cap stocks experiencing significant losses.

Notable declines included Vinhomes (VHM) dropping 2.57 per cent, VPBank (VPB) down 2.43 per cent, SSI Securities Corporation (SSI) falling 1.94 per cent, FPT Corporation dipping 1.39 per cent and Hoa Phat Group (HPG) declining 0.71 per cent. 

The adjustment in these stocks exerted considerable pressure on the index.

Similarly, the HNX-Index on the Hanoi Stock Exchange (HNX) dropped 1.34 per cent to 269.55 points.

Despite the overall market downturn, a few bright spots emerged to mitigate deeper losses. MBBank (MBB) rose by 1.52 per cent, Techcombank (TCB) increased by 0.78 per cent, LPBank (LPB) climbed by 1.18 per cent and Vingroup (VIC) saw a gain of 0.59 per cent. 

With the VN-Index losing the 1,660-point threshold and record net selling by foreign investors, short-term market sentiment is expected to remain under pressure. However, domestic capital appears stable and ready to support the index as leading stocks decline.

Experts anticipate that the VN-Index may fluctuate around the support range of 1,640 - 1,650 points in the coming sessions before finding a balance.

Investors are advised to maintain a reasonable equity allocation while avoiding chasing prices during any rallies. 

Bizhub