Selling force on banking stocks weighs on market

Selling force on banking stocks weighs on market

Foreign investors also add pressure to the market, posting net sales of over VNĐ710 billion on HoSE.

A customer conducts a transaction at a Vietcombank office. Shares of the lender lost over 1 per cent on Wednesday, leading the market's downtrend. — VNA/VNS Photoo

The stock market corrected slightly on Wednesday as selling pressure prevailed across banking, securities and property stocks, while subdued liquidity continued to reflect investor caution.

On the Hochiminh Stock Exchange (HoSE), the VN-Index closed down 5.33 points to 1,726.69 points. The 30 biggest stocks tracker, VN30-Index, was almost unchanged, edging down 0.41 points to 1,875.73 points.

The HNX-Index on the Hanoi Stock Exchange (HNX) lost 2.34 points to finish at 279.98 points.

The VN-Index opened in positive territory and staged several recovery attempts during the session but failed to sustain the gains as selling pressure broadened. Large-cap stocks also lost some of their previous supporting role, with Vingroup (VIC) finishing unchanged and Vinhomes (VHM) slipping slightly.

Liquidity remained relatively weak despite improving from the previous session. Total trading value across the market reached approximately VNĐ15.7 trillion (US$600 million), up 6.6 per cent from the previous session but still 8.8 per cent below last week's average of VNĐ17.22 trillion per session.

Market breadth leaned firmly towards sellers, with 300 stocks declining against 142 gainers. 

Banking shares were among the main drags on the benchmark.

Vietcombank (VCB) declined 1.03 per cent, shaving about 1.07 points off the VN-Index, while Vietinbank (CTG) fell 1.74 per cent and cost the index another 0.91 points. BIDV (BID) dropped 0.83 per cent, HDBank (HDB) lost 0.93 per cent, Sahabank (SHB) declined 0.86 per cent and Maritime Bank (MSB) retreated 1.27 per cent.

Among the stocks exerting the greatest downward pressure on the VN-Index, Petrovietnam Refining and Petrochemical Corporation (BSR) declined 1.84 per cent and erased about 0.53 points.

The decline in BSR came after oil and gas stocks had provided significant support to the market in the previous session, highlighting the continued rotation of cash flow between individual sectors.

A handful of heavyweight stocks nevertheless helped prevent a deeper correction. 

Vinamilk (VNM) gained 1.61 per cent and contributed about 0.46 points to the VN-Index. LPBank (LPB) provided a similar contribution, while steelmaker Hoa Phat Group (HPG) advanced 0.95 per cent, adding around 0.37 points. Techcombank (TCB) rose 0.49 per cent and contributed approximately 0.23 points.

Foreign investors continued to add pressure to the market, posting net sales of over VNĐ710 billion on HoSE. 

Bizhub