VN-Index reverses course due to rising selling force

VN-Index reverses course due to rising selling force

By the close of trading, the VN-Index had dropped 22.54 points, or 1.23 per cent, settling at 1,806.5 points. During the session, the index even dipped below the pivotal 1,780-point mark.

A jackup rig, PV DRILLING II. Shares of PV Drilling logged the maximum daily gain of 7 per cent on Monday, cushioning the market's losses. — Photo pvdrilling.com.vn

The stock market opened the new month under significant pressure from investors, as widespread selling intensified, particularly among large-cap stocks. 

The VN-Index on the HoChiMinh Stock Exchange (HoSE) fell sharply, breaching a crucial support level before experiencing a notable recovery towards the session's end, fuelled by bottom-fishing cash inflows.

By the close of trading, the VN-Index had dropped 22.54 points, or 1.23 per cent, settling at 1,806.5 points. During the session, the index even dipped below the pivotal 1,780-point mark.

Market breadth remained negative, though conditions improved slightly, with 210 stocks declining. 

The market's liquidity remained robust, with nearly 974 million shares changing hands, translating to a trading value of VNĐ31.87 trillion (US$1.2 billion). Cash flow was predominantly concentrated in certain leading sectors exhibiting short-term potential.

The VN30-Index also finished lower at 2,004.31 points, down 25.5 points, or 1.26 per cent. In the VN30 basket, 18 stocks went down, 10 ticked up and three stayed flat. 

Vin family stocks led the market's downtrend, with Vingroup (VIC), Vinhomes (VHM), Vincom Retail (VRE) all hitting the floor prices, while Vinpearl (VPL) plunged nearly 6.2 per cent. The group contributed over 24.5 points to the index's losses. 

The banking sector exhibited considerable divergence, with several State-owned banks rebounding positively toward the end of the session. Notable performers included BIDV (BID), which rose 2 per cent, Vietinbank (CTG), which increased 1.5 per cent, and Vietcombank (VCB), which gained 1.4 per cent.

Despite a generally cautious market environment, the energy and oil sector emerged as a rare bright spot, attracting significant cash inflow. Stocks like PV Drilling (PVD), Binh Son Refining and Petrochemical (BSR), PetroVietnam Technical Services Corporation (PVS) and Petrolimex (PLX) experienced substantial gains in the 6-7 per cent range, providing support to overall market sentiment and mitigating the widespread selling pressure.

On the Hanoi Stock Exchange (HNX), sentiment was considerably more optimistic, with all major indices closing in positive territory. 

The HNX-Index increased by 4.26 points, or 1.66 per cent, to 260.39 points. Investors poured over VNĐ2.19 trillion into the northern bourse, equal to a trading volume of nearly 93.7 million shares. 

Also weighing on market sentiment was strong net selling by foreign investors, who offloaded more than VNĐ2.46 trillion worth of shares on HoSE, primarily targeting large-cap stocks like VIC and VHM. They also net sold VNĐ33.33 billion on HNX.

According to analysts at Vietcombank Securities, the 1,800-point mark is identified as a crucial support level for the market in the current phase. Investors are advised to closely monitor market movements and hold onto stocks showing signs of successful price consolidation. 

Bizhub