Market reverses course due to profit-taking pressure

Market reverses course due to profit-taking pressure

Foreign investors continued to show a negative sentiment, registering a net sell-off of over VNĐ646.7 billion on the southern bourse.

A worker checking products at a Hoa Phat Group warehouse before transporting. Shares of the steel producer performed positively on Wednesday, cushioning the market's loss. — Photo hoaphat.com.vn

The stock market finished lower on Wednesday, as strong selling pressure weighed on blue-chip stocks.

On the Hochiminh Stock Exchange (HoSE), the VN-Index decreased by 10.92 points, or 0.66 per cent, to 1,649 points. The reversal ended the index’s three straight days of gains. During the trading session, the VN-Index even fell nearly 17 points, hitting a low of 1,643.13 points. 

The benchmark index opened near its lows, fluctuating around the 1,650 - 1,660 point range. However, it faced continuous pressure from sharp corrections in the afternoon, reflecting cautious investor sentiment in light of macroeconomic risks.

The overall sentiment in the market was overwhelmingly bearish, with only 84 stocks advancing compared to 222 that declined.

Liquidity across the HoSE improved slightly, reaching VNĐ24.3 trillion (US$922 million), with substantial trading volume concentrated in declining blue-chip stocks. 

The VN30-Index also closed lower at 1,886.2 points, down 11.87 points, or 0.63 per cent. In the VN30 basket, only five stocks ended the day higher, while 23 declined, and two stayed flat.  

HDBank (HDB) emerged as the strongest performer, increasing by 2.79 per cent, while Hoa Phat Group (HPG) followed with a modest gain of 0.36 per cent. 

Vingroup (VIC) also posted positive performance with a gain of 0.23 per cent and Vinamilk (VNM) rose just 0.33 per cent. 

Conversely, Vinhomes (VHM) flipped from positive to negative territory, down 0.1 per cent to VNĐ96,900.

Data from financial website vietstock.vn showed that the eight largest underperforming stocks detracted 5.5 points from the VN-Index, while the top eight gainers added only 1.7 points. 

Banking stocks were particularly hit hard, with all Big4 banks seeing losses: Vietcombank (VCB) down 2.4 per cent, BIDV (BID) 0.8 per cent, Vietinbank (CTG) 1.6 per cent, and MBBank (MBB) 0.8 per cent.

Other indices also struggled, with the HNX-Index on the Hanoi Stock Exchange (HNX) sliding down by 2.33 points, or 0.87 per cent, to settle at 265.03 points.

Foreign investors continued to show a negative sentiment, registering a net sell-off of over VNĐ646.7 billion on the southern bourse. 

Despite the downturn, many securities companies maintain a positive medium-term outlook, viewing the adjustment as a technical correction following the VN-Index’s failure to break the resistance level at 1,660-1,670 points.

The next strong support level is identified between 1,620 and 1,630 points, where the 50-day and 100-day moving averages converge. Holding this range could allow the index to resume its upward trend in the future. 

Bizhub