Foreign selling, property losses keep VN-Index under pressure

Foreign selling, property losses keep VN-Index under pressure

Persistent foreign selling and sharp losses in property shares dragged the VN-Index lower on Wednesday, despite stronger trading activity and gains in energy stocks.

Potential buyers and investors explore a scale model of the Vinhomes Green Paradise Cần Giờ in HCM City. Property stocks came under pressure on Wednesday, weighing on the broader market. — Photo courtesy of Vinhomes

Việt Nam’s benchmark stock index edged lower on Wednesday as persistent foreign outflows and weakness in property shares kept sentiment fragile, extending a volatile trading pattern seen since the start of the week.

The VN-Index on the Hochiminh Stock Exchange (HoSE) closed down 0.14 per cent at 1,898.37 points after recovering from steeper intraday losses.

The market had dropped more than 1 per cent at the beginning of the week before rebounding 0.3 per cent on Tuesday, highlighting cautious investor sentiment around the key 1,900-point threshold.

The HNX-Index on the Hanoi Stock Exchange outperformed, rising 0.53 per cent to 254.62 points.

Liquidity improved from the previous session, with nearly 973 million shares traded on the HoSE, worth nearly VNĐ30 trillion (US$1.1 billion) by the end of the day, up 33 per cent in volume and 40 per cent in value.

Trading on the Hà Nội exchange reached 82 million shares VNĐ1.5 trillion, up nearly 90 per cent in both volume and liquidity.

The stronger turnover suggested selling pressure remained elevated, particularly in large-cap property and banking stocks.

The benchmark extended losses in the afternoon session before bargain hunting helped pare declines toward the close.

Real estate stocks remained the biggest drag on the market. Shares of Vingroup affiliate Vinhomes (VHM) fell 4.8 per cent, while Vincom Retail (VRE) slumped 6.9 per cent. Vingroup (VIC) itself also declined by 0.5 per cent, weighing heavily on the VN-Index alongside lender Saigon Treasure Bank (STB), which lost 4.3 per cent.

The property sector dropped 1.57 per cent overall, making it the worst-performing group on the market.

In contrast, energy stocks rallied strongly as oil and utility names attracted buying interest. The sector gained 4.3 per cent, led by gains in Petrolimex (PLX), PV Drilling and Wells Service (PVD) and Binh Son Refining and Petrochemical (BSR), with growth ranging between 3.8 per cent and 6.8 per cent.

Foreign investors extended their selling streak for another session, offloading a net VNĐ1.5 trillion on the HoSE. The heaviest net selling was seen in technology firm FPT Corporation (FPT), followed by Asia Commercial Bank (ACB), VHM and STB.

On the HNX exchange, foreign investors were also net sellers worth VNĐ60 billion.

Analysts at Kafi Securities said the market was likely to remain volatile around the 1,900-point level, adding that late-session bargain hunting suggested the latest decline reflected supply-demand rebalancing rather than a reversal of the short-term trend.

The brokerage said support for the benchmark index was seen around the 1,880–1,890 range, where bottom-fishing demand could continue to emerge. 

Bizhub