Indices reverse course on rising selling pressure

Indices reverse course on rising selling pressure

Investors remain cautious, focusing on short-term, individual opportunities, while the major stocks have yet to take on a leading role.

A building of Gelex Group. Shares of the company jumped nearly 3.7 per cent on Wednesday, cushioning the market's downturn. — Photo gelex.vn

Following a remarkable recovery of nearly 50 points in previous sessions, Việt Nam's stock market finished lower on Wednesday due to stronger profit-taking pressure and the absence of leading stocks.

On the Hochiminh Stock Exchange (HoSE), the VN-Index fell by 5.52 points, or 0.33 per cent, to 1,673.66 points.

Market breadth leaned negative, with 206 stocks declining compared to 114 that increased. Liquidity on the southern bourse also declined from the previous session to VNĐ19.5 trillion (US$741.7 million).

The VN30-Index reflected pronounced weakness, with only six stocks recording gains while 21 stocks fell, including one that hit the floor price, leading the VN30-Index to drop by 11.92 points, or 0.62 per cent, to 1,897.95 points.

The HNX-Index on the Hanoi Stock Exchange (HNX) also ended lower at 253.12 points, down 0.77 points, or 1.96 per cent.

During the session, nearly VNĐ920.3 billion worth of stocks were traded on the northern exchange, equivalent to a trading volume of 47.3 million shares. 

Public investment stocks emerged as a rare bright spot. Gelex Electricity (GEE) surged to its ceiling price with a notable 7 per cent increase, marking a strong recovery after seven consecutive sessions of decline.

Gelex Group (GEX) also rose by 3.69 per cent, while Vinaconex (VCG) and Coteccons (CTD) both saw gains of over 1 per cent.

Conversely, the banking sector faced significant selling pressure, with nearly all major stocks declining: Vietinbank (CTG) fell by 1.56 per cent, Techcombank (TCB) by 1.21 per cent, Sahabank (SHB) by 1.26 per cent, VPBank (VPB) by 0.88 per cent and Vietcombank (VCB) by 0.35 per cent.

The securities sector similarly struggled, as SSI Securities (SSI) dropped by 1.98 per cent, VIX Securities (VIX) by 2.84 per cent, Ho Chi Minh Securities (HCM) by 1.71 per cent and Saigon-Hanoi Securities (SHS) by 1.87 per cent.

Meanwhile, foreign investors were net buyers, purchasing over VNĐ3.34 billion on HoSE.

Overall, Wednesday’s adjustment reflects a necessary rest phase for the market following a rapid recovery.

Investors remain cautious, focusing on short-term individual opportunities while major stocks have yet to take a leading role.

Given that liquidity has not significantly improved, the VN-Index is likely to continue wavering within a trading range in the coming sessions, awaiting clearer signals to confirm market trends.

As the market navigates this cautious phase, participants will be keenly observing for indicators that could provide direction and opportunities amidst fluctuations. 

Bizhub