VN-Index gains slightly despite rising selling force

VN-Index gains slightly despite rising selling force

Foreign investors continued to be net sellers, offloading VNĐ50.5 billion on the HoSE. While the volume of net selling was not overwhelming, the persistent trend in recent sessions poses certain barriers to index growth.

Customers at a VPBank transaction office. Shares of the lenders surged nearly 2.5 per cent on Tuesday, supporting the market's ongoing recovery. — Photo courtesy of the bank

Benchmark indices closed mixed on Tuesday, with the VN-Index continuing its recovery, while foreign investors kept withdrawing capital from the main exchange.

The VN-Index on the Hochiminh Stock Exchange (HoSE) gained slightly by 5.5 points, or 0.33 per cent, to 1,659.92 points. This modest recovery follows a period of prolonged fluctuations last week, as investor sentiment remains cautious amid steady but non-explosive capital flow.

However, the market's breadth was negative, as the number of decliners surpassed that of gainers by 161 to 152. Liquidity on the southern bourse was over VNĐ22.6 trillion (US$859 million).

The VN30-Index also rose, gaining 4.53 points, or 0.24 per cent, to 1,898.07 points, with nearly half of the stocks in the index closing higher.

In contrast, the HNX-Index on the Hanoi Stock Exchange (HNX) decreased by 1.33 points, or 0.49 per cent, to 267.36 points.

Although the gains were not substantial, the VN-Index’s ability to maintain positive momentum until the session's end was viewed as a favourable indicator amid ongoing selling pressures across multiple sectors.

The banking sector played a crucial role in sustaining market momentum.

After a brief correction period, bank stocks showed a significant recovery, with VPBank (VPB) rising by 2.49 per cent, Sacombank (STB) by 1.23 per cent, Eximbank (EIB) by 1.58 per cent and TPBank (TPB) by 2.62 per cent.

Real estate also continued to attract significant capital, with heavyweights Vingroup (VIC), Vinhomes (VHM) and Novaland (NVL) all posting strong gains.

VHM climbed 2.11 per cent, VIC was up 1.38 per cent and NVL soared nearly 5 per cent. These stocks were among the top contributors to the VN-Index.

Meanwhile, mid-cap real estate stocks like CEO Group (CEO), DIC Group (DIG) and Phat Dat Real Estate Development Corporation (PDR) showed slight corrections, but the selling pressure was manageable.

The positive performance in this sector is believed to come from expectations of relaxed credit policies towards year-end and improved liquidity in the corporate bond market.

Foreign investors continued to be net sellers, offloading VNĐ50.5 billion on the HoSE. While the volume of net selling was not overwhelming, the persistent trend in recent sessions poses certain barriers to index growth.

With a stable yet slight increase, analysts view the VN-Index as being in a critical accumulation phase, setting the stage for a new upward movement if capital flow improves in the coming sessions.

In the short term, the index is likely to fluctuate between 1,655 and 1,675 points. Despite selling pressures across various sectors, the continued recovery of leading stocks like VHM, VIC and NVL in conjunction with the banking sector is deemed essential support for stabilising the market. 

Bizhub