VN-Index drops after two-day rally amid volatile trading

VN-Index drops after two-day rally amid volatile trading

Vietnamese shares fell after two sessions of gains as banking and securities stocks declined, while the VN-Index closed below 1,710 amid volatile trading.

A customer at Bảo Việt Securities Company's headquarters. The VN Index on Thursday dropped 1.08 per cent to end at 1,709.61. VNA/VNS Photo

The VN-Index fell on Thursday after two consecutive sessions of gains, with the benchmark closing below the 1,710-point level following a volatile trading day.

The index dropped 18.73 points, or 1.08 per cent, to end at 1,709.61. It fluctuated sharply during the afternoon session – at one point sliding close to 1,700 points before rebounding to around 1,717.

Losses were broad-based across the market. Of the 23 sector groups tracked by VietstockFinance, 15 declined and eight advanced, with eight sectors posting steeper losses than the overall market.

Technology and software stocks were among the biggest laggards, down about 3 per cent. Financial services – mainly securities firms – fell 2.52 per cent, while telecommunications services dropped 2.17 per cent. Other declining sectors included hardware and equipment, insurance, utilities, banking, transportation, food and beverages and pharmaceuticals.

Banking and brokerage stocks, which often attract strong investor interest, posted notable losses. Techcombank (TCB) fell 3.5 per cent, while VietinBank (CTG), BIDV (BID), Military Bank (MBB) and VPBank (VPB) each dropped over 2 per cent. Securities firms also weakened, with big players such as SSI Securities Corp (SSI) and Ho Chi Minh City Securities Corp (HCM) both down over 3 per cent.

Despite the broad decline, several sectors recorded gains, notably chemicals, construction engineering, oil and gas and electrical equipment. PetroVietnam Fertiliser and Chemicals (DPM) hit the daily ceiling, while DAP – Vinachem (DDV), Duc Giang Chemicals (DGC) and PetroVietnam Ca Mau (DCM) rose between 4 per cent and 5 per cent.

Market liquidity continued to weaken. Nearly 957 million shares worth nearly VNĐ27.2 trillion (more than US$1 billion), down 4 per cent in volume and 8 per cent in value compared to the previous session.

According to analysts at Shinhan Securities Vietnam, the market’s recent rebound may be seen as a technical recovery after the VN-Index fell more than 12 per cent from its recent peak.

However, low liquidity suggests investors remain cautious. The brokerage expects the VN-Index to test the 100-day moving average around 1,750 points, but warned that failure to hold the recovery could see the index return to the key psychological level of 1,700.

Foreign investors were net sellers with nearly VNĐ300 billion withdrawn from the market. They sold the most shares of FPT Corporation worth about VNĐ126 billion, while Mobile World Investment (MWG) recorded the largest net foreign buying value at nearly VNĐ246 billion, despite its shares falling 2.2 per cent.

On the northern bourse, the HNX-Index rose 0.34 per cent, extending its gain to a third straight session, with nearly 90 million shares worth VNĐ1.7 trillion changing hands. 

Bizhub