Benchmark indices fall on rising selling force

Benchmark indices fall on rising selling force

Foreign investors also showed a negative sentiment, net selling over VNĐ1.75 trillion on HoSE.

A customer conducts a transaction at a BIDV office. The bank's shares rose by more than 2.3 per cent on Tuesday, cushioning the market's downbeat. — Photo vietnamplus.vn

The stock market faced significant turbulence on Tuesday, as the VN-Index briefly surpassed its historic peak before reversing direction due to increased profit-taking pressure from investors.

On the Hochiminh Stock Exchange (HoSE), the VN-Index fell by 2.81 points, or 0.15 per cent, closing at 1,893.78 points. In early trading, the index surged nearly 20 points to reach an impressive 1,915, just shy of its previous record. However, this momentum was short-lived, as selling pressure from major large-cap stocks prompted a swift reversal.

The session featured 180 declining stocks and 149 advancing stocks. Liquidity remained high at over VNĐ37 trillion (US$1.4 billion), equal to a trading volume of nearly 1.1 billion shares.

Prior to this session, many brokerage firms anticipated that the index would set a new record, given that it was only seven points away from its previous peak. Despite the initial excitement, which saw the index rise to 1,915 points, 20 points above its opening value, this optimistic trend quickly dissipated.

The shift was largely driven by a wave of selling from the VN30 basket. This downturn marked the end of the positive momentum that had been building since the previous week.

The VN30-Index declined by 8.63 points, or 0.41 per cent, to 2,085.61 points. In the VN30 basket, 18 stocks ticked down and 12 inched higher.

Key industry sectors faced considerable selling pressure. 

In the banking sector, notable declines were led by Kien Long Commercial Joint Stock Bank (KLB), which fell by 3.8 per cent. Other major banks such as Vietinbank (CTG), Sacombank (STB), MBBank (MBB) and Techcombank (TCB) each recorded losses ranging from 0.5 per cent to 1 per cent.

BIDV (BID) emerged as a crucial support, managing to maintain positive momentum throughout the session and ending with a gain of over 2 per cent.

The real estate sector also witnessed strong selling from major developers, with Novaland (NVL), Phat Dat Real Estate Development (PDR) and Dat Xanh Group (DXG) each declining by more than 1.5 per cent from their reference prices.

Stocks connected to Vingroup were similarly affected, with Vingroup (VIC) dropping by 0.6 per cent, while Vinhomes (VHM), Vincom Retail (VRE) and Vinpearl (VPL) saw losses in the range of 1.5-3 per cent.

After a period of recovery, the oil and gas sector came under widespread pressure. Stocks such as PV Drilling (PVD), PetroVietnam Transportation Corporation (PVT) and Binh Son Refining and Petrochemical (BSR) experienced declines between 0.2 per cent and 3 per cent. Petrolimex (PLX), however, stood out, rising more than 6 per cent.

The HNX-Index on the Hanoi Stock Exchange (HNX) also finished lower at 253.11 points, down 1.84 points, or 0.72 per cent.

Foreign investors indicated a negative sentiment, net selling over VNĐ1.75 trillion on HoSE. However, they net bought VNĐ33.57 billion on HNX. 

Bizhub