VN-Index breaks below 1,800 points on large-cap stocks

VN-Index breaks below 1,800 points on large-cap stocks

The sharp decline was particularly pronounced in the real estate and technology sectors.

A BIDV bank teller talks to customers at its office in HCM City. Shares of the lender plunged more than 2 per cent on Wednesday, weighing on the market's downturn. — VNA/VNS Photo

The domestic stock market ended Wednesday on a negative note, as losses in large-cap stocks caused the VN-Index to fall below the critical 1,800-point threshold.

A cautious sentiment enveloped the market as the index failed to hold onto short-term support levels.

The VN-Index on the Hochiminh Stock Exchange (HoSE) dropped 21.97 points, or 1.21 per cent, to 1,791.43 points, marking its lowest close in a month.

However, the southern market's breadth remained in the positive zone with 167 stocks increasing and 155 declining. Liquidity rose slightly from the previous session to more than VNĐ33.9 trillion (US$1.3 billion), equal to a trading volume of over 1 billion shares.

The 30 biggest stocks tracker, VN30-Index, also posted a fall of 9.5 points, or 0.48 per cent, to 1,988.19 points. In the VN30 basket, 16 ticker symbols went down, while ten ticked up and four stayed flat.  

The sharp decline was particularly pronounced in the real estate and technology sectors. 

Vingroup (VIC) dropped by 7 per cent and Vinhomes (VHM) by 6.17 per cent, making them the two largest negative contributors to the VN-Index. 

Other notable decliners included FPT Corporation (FPT), down 1.92 per cent, Masan Group (MSN) down 1.31 per cent, BIDV (BID) decreased 2.03 per cent and Vietcombank (VCB) dipped 1.39 per cent, all of which further exacerbated the market's downturn.

Conversely, some stocks managed to maintain positive momentum, with Hoa Phat Group (HPG) gaining 5.79 per cent, emerging as a crucial support for the market.

Among banks, MBBank (MBB) rose by 0.36 per cent, VPBank (VPB) by 0.91 per cent and Sacombank (STB) by 1.27 per cent.

In contrast, the HNX-Index on the Hanoi Stock Exchange (HNX) extended gains, up slightly 0.77 points, or 0.29 per cent, to 265.95 points. 

Foreign investors were still net sellers on the main exchange as they net sold VNĐ956.76 billion on HoSE. Still, they net bought nearly VNĐ6 billion on HNX.

Prior to this session, several securities firms had predicted that the market might remain unstable due to a lack of clear trend signals. 

However, the trading patterns observed during the session indicated that profit-taking and heightened caution among investors significantly intensified toward the end of the day, causing the VN-Index to break below the 1,800-point mark.

According to analysts at BIDV Securities Company (BSC), the VN-Index has not successfully surpassed the resistance level of 1,830 points and remains in a phase of price consolidation around the 1,800-point area. 

In this context, with no clear reversal signals on the horizon, investors are advised to exercise caution in their trading decisions. 

Bizhub