Market pulls back after strong rally

Market pulls back after strong rally

After a strong rally, the market is entering a correction phase marked by declining liquidity and cautious capital flows, indicating that investor sentiment remains wary of short-term fluctuations.

Workers are packing fertiliser products at a plant of Duc Giang Chemicals. The company's shares plunged nearly 4.7 per cent on Thursday, weighing on the market's sentiment. — Photo ducgiangchem.vn

The market reversed sharply on Thursday, pulling back after the prior session's explosive gains as broad-based selling pressure outweighed a handful of isolated positives.

The VN‑Index, representing the Hochiminh Stock Exchange (HoSE), closed at 1,736.68 points, down 19.87 points, or 1.13 per cent.

The southern bourse saw 191 stocks decline and 124 increase. Liquidity also fell from the previous trade to VNĐ28.9 trillion (US$1.1 billion).

The VN30‑Index lost 16 points, or 0.83 per cent, to 1,915.01 points. Within the VN30 basket, 22 ticker symbols fell while seven edged up and one ended flat.

Several heavyweights dominated the downside pressure. Vingroup (VIC) dropped 2.74 per cent, subtracting 6.82 points from the VN‑Index, followed by Vinpear (VPL) down 5.88 per cent, Vietcombank (VCB) declining 1.33 per cent, BIDV (BID) falling 2.05 per cent and Vinhomes (VHM) down 0.81 per cent.

Duc Giang Chemicals Group (DGC) performed poorly, tumbling 4.67 per cent to VNĐ53,100 per share. Selling intensified after HoSE placed DGC stock on the list of securities ineligible for margin trading, bringing the total number of such stocks to 69 as of April 8.

The exchange’s decision followed the company's delay in publishing audited 2025 financial statements by more than five working days past the regulatory deadline.

However, gains in some stocks mitigated losses. The leading positive contributor to the VN‑Index was Novaland (NVL).

Although shares of the property developer did not sustain a ceiling price, NVL climbed more than 6 per cent, becoming the largest positive influence on the benchmark by adding roughly 0.454 points.

Other contributors included Hoa Phat Group (HPG), LPBank (LPB), Techcombank (TCB) and Gelex Group (GEX).

The HNX‑Index on the Hanoi Stock Exchange (HNX) eased 2.34 points, or 0.92 per cent, to 250.98 points.

Net foreign flows continued to weigh on sentiment. On HoSE, foreign net selling was reported at over VNĐ2.2 trillion.

Overall, after a strong rally, the market is entering a correction phase marked by declining liquidity and cautious capital flows, signalling that investor sentiment remains wary of short-term fluctuations. 

Bizhub