Indices fall on rising selling force

Indices fall on rising selling force

Market breadth favoured sellers, with 204 decliners against 118 advancers.

The Dung Quat refinery, run by Binh Son Refining and Petrochemical. Shares of the company jumped over 5 per cent on Monday, cushioning the market's reversal. — Photo bsr.com.vn

Benchmark indices opened the week on a negative note, as broad selling pressure drove the VN‑Index down during the session.

On the Hochiminh Stock Exchange (HoSE), the VN‑Index finished the day at 1,662.54 points, down 10.26 points, or 0.61 per cent. The index even lost more than 30 points in the early trade. 

Market breadth favoured sellers, with 204 decliners against 118 advancers. Trading liquidity on HoSE amounted to about VNĐ21.5 trillion (US$816 million).

The VN30‑Index, tracking the 30 biggest stocks on the HoSE, also fell, losing 9.61 points, or 0.53 per cent, to close at 1,811.92. Nineteen stocks in the VN30 basket ticked down, while eight finished higher and three ended flat.  

Vingroup (VIC) exerted the heaviest negative drag on the VN‑Index, shaving approximately 5.03 points, with contributions also coming from Vietcombank (VCB), Vietinbank (CTG), FPT Corporation (FPT) and MBBank (MBB).

The index pared losses thanks to gains in some big names, especially in the oil and gas industry.  

Binh Son Refining and Petrochemical (BSR) was the top positive driver, up 5.62 per cent or adding roughly 1.76 points to the VN‑Index.

It was followed by Gelex Electricity (GEE), with the company’s shares hitting the maximum daily gain of 7 per cent, while Vietnam Rubber Group (GVR) soared by 3.12 per cent, Hoa Phat Group (HPG) rose by 1.51 per cent and Sacombank (STB) climbed by 2.17 per cent.  

Other oil and gas stocks posting positive performance were PV Drilling (PVD), up 1.26 per cent, benefiting from a surge in oil prices.

Global energy developments weighed on market dynamics. In the morning trade, Brent crude jumped to about $116.75 per barrel while WTI approached US$103 per barrel amid an escalation of geopolitical tensions in the Middle East, stoking fears of disruptions to global energy supply.

On the Hanoi Stock Exchange (HNX), the HNX‑Index declined 1.77 points, or 0.7 per cent, to 250.59 points.

Over 76 million shares were traded on the northern bourse, worth VNĐ1.48 trillion. 

Foreign investors remained net sellers as they net sold nearly VNĐ1.4 trillion on HoSE. Nevertheless, they still net bought a small amount of nearly VNĐ27 billion worth of shares on HNX.

Market participants noted the decline came as deposit interest rates showed signs of rebounding above 7 per cent per annum for 12‑month terms at some banks, coupled with the oil‑price shock. Those developments appeared to heighten investor caution and limit participation.

Bizhub