VN-Index extends losses as foreign investors step up bank stock selling

VN-Index extends losses as foreign investors step up bank stock selling

Foreign investors stepped up selling of bank shares as the VN-Index lost more than 30 points on Monday.

Market breadth remained negative, with 564 stocks declining against 141 gainers across the two exchanges. — Photo thoibaotaichinhvietnam.vn

Shares extended losses on Monday as selling pressure spread across the market, with foreign investors stepping up net sales of banking shares.

On the Hochiminh Stock Exchange, the VN-Index dropped 30.9 points, or 1.77 per cent, to close at 1,710.72 points.

The HNX-Index on the Hà Nội Stock Exchange fell 2.19 points, or 0.87 per cent, to 250.55 points.

Market breadth remained negative, with 564 decliners against 141 gainers across the two exchanges. In the VN30 basket of the 30 largest stocks by market capitalisation and liquidity, 27 declined, two advanced and one was unchanged.

Trading activity increased from the previous session, with matched trading volume on the Hochiminh Stock Exchange totalling more than 724 million shares worth over VNĐ15.8 trillion (US$607 million).

Selling pressure intensified in the afternoon, despite a brief return of buying interest, leaving the benchmark struggling to recover before the close.

Banking and property stocks were among the biggest drags on the index. Vietcombank (VCB), VPBank (VPB), BIDV (BID) and Vinhomes (VHM) together accounted for more than 11.33 points of the decline.

In contrast, gains in Vingroup (VIC), Vietjet Air (VJC), Transimex (TMS) and BIDV Securities (BSI) provided limited support, contributing a combined 1.91 points.

All major sectors ended lower, with information technology leading the losses, down 4.57 per cent on average, tracked by vietstock.vn. FPT Corporation fell 4.74 per cent, while CMC Corporation (CMG) and ELCOM (ELC) dropped 3.78 per cent and 3.64 per cent, respectively.

Basic materials and media services followed, declining 4.35 per cent and 2.78 per cent, respectively. Steelmaker Hòa Phát Group (HPG) lost 2.86 per cent, while rubber group GVR fell 6.88 per cent.

Foreign investors continued to be net sellers on the southern bourse, offloading shares worth more than VNĐ523 billion. Their selling was concentrated in Military Bank (MBB), Vietcombank (VCB), Asia Commercial Bank (ACB) and Sacombank (STB), with net outflows of VNĐ182 billion, VNĐ155 billion, VNĐ117.5 billion and VNĐ105.5 billion, respectively.

On the Hanoi exchange, foreign investors were net buyers worth VNĐ71 billion, led by SHS Securities, CEO Group, PetroVietnam Technical Services Corporation (PVS) and MB Securities (MBS).

Market analysts expect the VN-Index to remain volatile as it searches for a new support level after its late-October correction.

Analysts at Asean Securities forecast the index could fluctuate between 1,720 and 1,770 points in the coming sessions, identifying 1,715-1,730 points as near-term support. They said a break below that range could expose the market to further losses towards 1,680-1,700 points.

Meanwhile, TPS Securities said a recovery would require stronger buying demand.

“TPS Securities said the VN-Index could recover if buying demand strengthens, but the rebound needs to be confirmed over the coming sessions. The risk of a deeper correction remains,” they wrote in a market note. 

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