Market falls due to loss on energy, large-cap stocks

Market falls due to loss on energy, large-cap stocks

The VN-Index briefly climbed above 1,725 points during the morning session before weakening rapidly and retreating to around 1,715 points.

Customers conduct transactions at a BIDV office. Shares of the lender dropped 1.5 per cent on Tuesday, leading the market's downtrend. — Photo courtesy of the bank

The stock market finished lower on Tuesday, as selling pressure on energy shares and several large-cap stocks weighed on the market. 

The VN-Index, representing the Hochiminh Stock Exchange (HoSE), declined 1.56 points to 1,719.42 points. The index briefly climbed above 1,725 points during the morning session before weakening rapidly and retreating to around 1,715 points.

The market's breadth was negative, as the number of decliners more than doubled the number of gainers. Liquidity remained at a low level of over VNĐ13.1 trillion (US$508 million).

The VN30-Index, which tracks the 30 largest stocks on the HoSE, also lost 8.39 points to 1,860.99 points. Within the VN30 basket, 19 stocks ticked down, while seven inched higher and four stayed flat. 

On the Hanoi Stock Exchange (HNX), the HNX-Index reversed course to fall 0.44 points to 264.25 points. 

Market data showed that BIDV (BID) was the biggest dragger of the market, losing nearly 1.5 per cent and erasing more than 0.8 points from the VN-Index. It was followed by Vietcombank (VCB), Masan Group (MSN), LPBank (LPB) and Sacombank (STB). 

National Citizen Commercial Joint Stock Bank (NVB) was among the session's most notable decliners, falling 9.7 per cent to VNĐ14,900 per share, its daily floor price. 

The decline followed a series of strong gains earlier in October. NVB rose 9.49 per cent on October 2 and 10 per cent on October 5, before advancing another 4.4 per cent on October 8.

Energy stocks also faced widespread selling pressure, with most major shares in the sector closing lower. 

PetroVietnam Technical Services Corporation (PVS) fell 1.49 per cent, while PetroVietnam Refining and Petrochemical (BSR) lost 0.98 per cent. Petrolimex (PLX) declined 0.83 per cent, PetroVietnam Transportation Corporation (PVT) dropped 0.6 per cent and PV Drilling (PVD) fell 0.56 per cent.

The sector's declines came as global oil prices cooled following a sharp increase in the previous session.

The losses were capped by gains in Vingroup-related stocks that were led by Vingroup (VIC). Shares of the conglomerate climbed 1.37 per cent, contributing nearly 5 points to the market's benchmark. Vinhomes (VHM) also gained 0.78 per cent, adding 0.87 points to the index. 

Market analysts expect the VN-Index to remain under pressure in the near term, with selling likely to intensify at higher price levels.

Foreign investors continued their selling streak, offloading VNĐ583.4 billion on HoSE and VNĐ23.9 billion on HNX.

Saigon-Hanoi Securities (SHS) said the benchmark was likely to continue weakening in the short term and face selling pressure during rebounds. It identified the 1,700–1,715-point range as a key area the index could retest.

According to SHS, this range corresponds to the market's low-price zone in August and a trendline connecting the lows recorded in March and July.

The securities firm described the range as a strong and important support zone for the VN-Index. Meanwhile, the VN30-Index remained weak and traded below psychological resistance levels.

Kafi Securities also expects the benchmark to fluctuate within a range of 1,700–1,735 points. It identified 1,720 points as psychological support and 1,700 points as an important support level based on the long-term trendline.

If the VN-Index falls below 1,700 points, it could retreat further to the 1,660–1,680-point range, Kafi said. 

Bizhub