VN-Index breaches below 1,600-point level

VN-Index breaches below 1,600-point level

The index remained below reference levels throughout the day.

The headquarters of FPT Corporation in Hà Nội. Shares of the company gained nearly 1 per cent on Friday, cushioning the market's losses. — Photo courtesy of FPT

Việt Nam’s stock market ended the week under pressure, with sharp losses across major sectors and strong selling from foreign investors weighing on sentiment as the VN-Index fell below key psychological thresholds.

The market closed the week on a negative note, experiencing a significant downturn with the VN-Index finishing at 1,599.1 points.

The benchmark of the Hochiminh Stock Exchange (HoSE) posted a loss of 43.54 points or 2.65 per cent.

Throughout the day, the index remained below reference levels, gradually sinking deeper, particularly during the first trading hour when it slipped below the 1,630-point mark.

Despite the sharp decline, the overall trading volume was not excessively high, indicating that selling was not yet a significant issue. The total trading value on the HoSE reached nearly VNĐ24.6 trillion (US$935 million), an increase of 38 per cent from the previous session.

The VN30-Index also finished lower at 1,824.71 points, down nearly 45 points or 2.4 per cent. In the VN30 basket, 28 ticker symbols declined while only two ticked up.

Leading the negative impact on the index were the Vin- stocks. Vinhomes (VHM) logged the maximum daily loss of 7 per cent while Vingroup (VIC) closed down 3.9 per cent.

In addition to the heavyweights, the market also faced pressure from the banking, real estate and securities sectors, all of which saw dominant red figures on their boards.

PV Gas (GAS) and FPT Corporation (FPT) were the only blue chips to remain in positive territory. GAS rose by 1.3 per cent while FPT gained 0.8 per cent.

On the Hanoi Stock Exchange (HNX), the HNX-Index decreased over 6 points or 2.27 per cent to 260.11 points.

Foreign investors continued to sell off, with net sales amounting to nearly VNĐ1.3 trillion for the third consecutive session on HoSE. However, they still net bought VNĐ43 billion on HNX.

Market movements appear to align with forecasts from several securities firms. Vietcap Securities suggested that the VN-Index might continue to hover within a range of 1,620-1,690 points throughout November, with a margin of error of about 10 points.

Meanwhile, Viet Dragon Securities projected that the VN-Index could fluctuate between 1,427 and 1,788 points over the next three months, reflecting short-term market risk scenarios.

As the market navigates a landscape interwoven with opportunities and risks in the final quarter of the year, investors are advised to maintain a moderate stock allocation. This strategy could provide flexibility for short-term corrections and optimise profits when the market rebounds after volatility. 

Bizhub