Intensified selling activity exerted downward pressure on VN-Index

Tuesday, Mar 19, 2024 03:10

A worker is collecting latex in a rubber plantation. Vietnam Rubber Group (GVR) yesterday lost 5.9 per cent. —VNA/VNS photo

Intensified selling activity exerted downward pressure on the overall market, resulting in a sharp decrease in the VN-Index.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed at 1,243.56 points, suffering a severe decline of 1.6 per cent.

Market breadth was negative as only 103 stocks gained while 407 decreased during the session.

Liquidity rocketed to a record high with more than 1.7 billion shares traded on the southern bourse, worth VNĐ43 trillion (US$1.7 billion).

The sharp decline in the VN-Index reflects the prevailing bearish sentiment and highlights the challenges faced by market participants in navigating the current market conditions, said financial news website

According to Nguyễn Anh Khoa, the Head of Analysis and Research Department at Agriseco Securities, the market is expected to undergo further fluctuations with a wide range of ups and downs in the upcoming sessions.

This is primarily due to the strong resistance level of the VN-Index. Additionally, the recent increase in net selling pressure from foreign investors is acting as a market deterrent.

While the long-term outlook for the Vietnamese stock market remains positive, short-term capital flows are inevitably influenced by global trends. The significant net selling activity by foreign investors over the past two weeks is seen as a negative and understandable development, according to Khoa.

The VN30-Index dropped 1.65 per cent, to finish trading at 1,235.74 points. As many as 28 out of the 30 stocks in the VN30 basket decreased.

Market sentiment worsened and investors became more cautious due to massive selling pressure, said

The worst performers were Vietnam Rubber Group (GVR), FPT Corporation (FPT), Mobile World Group (MWG), PVPower (POW), Vinhomes (VHM), VPBank (VPB).

Banking and securities stocks also sank deeply, including Vietinbank (CTG), VPBank (VPB), Techcombank (TCB), Tiền Phong Bank (TPB), HDBank (HDB), Military Bank (MBB), Asia Commercial Bank (ACB) and Bank for Investment and Development of Việt Nam (BID), SSI Securities (SSI), HCM City Securities (HCM), Vietinbank Securities (CTS), Agribank Securities (AGR) and BIDV Securities (BSI).

On a sector basis, all 25 on the stock market lost ground including wholesale, insurance, real estate, IT, retail, banking, food and beverages, logistics and construction, securities, energy, agriculture, rubber production, seafood processing, construction material and spare parts.

On the Hà Nội Stock Exchange, the HNX-Index lost by 1.19 per cent to close at 236.68 points.

Nearly 182 million shares were traded on the northern exchange, worth VNĐ3.8 trillion. — VNS

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