The market exhibited a reverse trend from Tuesday’s performance when selling force increased sharply, pushing prices down. Many good performers on Tuesday declined on Wednesday, showing short-term fluctuations with high risk.
On the Ho Chi Minh Stock Exchange, the VN-Index closed Wednesday down 0.57 per cent at 1,048.98 points. The southern market’s index inched up 0.1 per cent on Tuesday.
Shares slid deeper in the afternoon session with 271 losers and 115 gainers. In the morning, only 57 stocks had lost more than 1 per cent, but the number increased to 133 by the end of the session.
Many stocks reversed Tuesday’s gains.
In the securities sector, only eight companies saw share prices rise, compared to three times as many decreasing. Big companies such as Saigon Securities Inc (SSI), Ho Chi Minh Securities Corp (HCM), VNDirect Securities (VND), Viet Capital Securities Co (VCI) and Vietinbank Securities (CTS) lost between 2-3 per cent each.
Not only the securities industry, but real estate, banking, seafood and steel sectors also experienced a significant reversal in many codes. Their erratic reversals caused many investors who raced to buy on Tuesday to be locked up.
According to market analysts, the abrupt increase on Tuesday was followed by a sharp decline on Wednesday, indicating an erratic reaction and an unstable supply and demand. It is important to note that there have been no changes to the fundamentals overnight.
The liquidity increased by 31 per cent compared to the morning, totalling 570 million shares worth VND9.7 trillion (US$411 million), also slightly higher compared to Tuesday’s levels. The afternoon’s active selling pressure continued the trend from the previous session.
“Although the market was still fluctuating with a clear divergence in sectors, the market continued to record efforts to absorb the source and support the cash flow at the end of the session. It is expected that the market may continue to recover in the near future,” Phuong Nguyen, a market analyst at Viet Dragon Securities Co, wrote in a note.
However, Phuong expected a short-term recovery of the market but the need to observe supply and demand movements at the resistance zone.
Meanwhile, analysts at BIDV Securities Co predicted in the next few sessions, the market may continue to fluctuate within the range of 1,045-1,055 before a clearer trend emerges.
On the Ha Noi Stock Exchange, the HNX-Index dropped by a steeper 1.15 per cent to end the day at 205.85 points. It rose 0.8 per cent on Tuesday.
Liquidity also declined sharply here to 64.4 million shares worth VND944 billion, down more than 30 per cent in both volume and value compared to the previous session.
Foreign traders were net sellers in HCM City, offloading shares worth a net value of VND488 billion. They remained net buyers in Ha Noi but for a modest value of VND2 billion. — VNS