Risk aversion dominated markets on Thursday as stocks across all sectors witnessed a strong sell-off.

On the Ho Chi Minh Stock Exchange, the VN-Index decreased by 0.63 per cent to close at 1,009.29 points.

The index had increased 1.97 per cent to close Wednesday at 1,004.57 points.

Investor’s wariness showed in low liquidity, with just 462.7 million shares worth more than VND8.2 trillion (US$346.6 million) being traded.

The 30 biggest stocks tracker, VN30-Index posted a loss of 0.56 per cent, to finish at 1,008.30 points. Of the VN30 basket, six stocks climbed, while 26 declined and three ended flat.

Do Bao Ngoc, Deputy Director of Kien Thiet Securities Joint Stock Company, said that the New Year holiday is the main reason why liquidity tends to decrease.

While institutional investors are under pressure to sell shares, individual investors flock to withdraw money in preparation for holidays or become cautious because of the lack of supporting information.

He said that liquidity would improve after the Lunar New Year, and institutional and individual investors would be more motivated to buy stocks.

Ngoc forecasted that the market would be bolstered by many supporting information such as the lift over their foreign ownership limit in; China reopening its economy; promotion disbursement of public investment capital; real estate market support solutions.

Many large-cap stocks such as Viglacera (VGC), Hoa Phat Group (HPG), Sabeco (SAB), lender BIDV (BID), PV Gas (GAS), Eximbank (EIB), insurer Bao Viet Holdings (BVH), VPBank (VPB), Asia Commercial Bank (ACB) and FPT Corp (FPT) slumped, pulling down the market.

On the bright side, Khang Dien House (KDH) growth, which increased by 3.3 per cent, became the biggest market puller. Other contributors included Masan Group (MSN), Vingroup (VIC), Vinhomes (VHM), Vietcombank (VCB), and Novaland (NVL).

On a sector basis, 16 out of 25 indices on the stock market lost ground, including wholesale, logistics, agriculture, real estate, retail, seafood production, construction materials, securities, plastic and chemical production, banking, oil and gas, IT, food and beverage,

Meanwhile, gainers were insurance, rubber production, construction, and healthcare.

On the Ha Noi Stock Exchange, the HNX-Index rose 0.24 per cent to end Thursday at 206.54 points.

It had risen 2.34 per cent to close Wednesday at 203.14 points.

Liquidity fell sharply when just 41 million shares worth VND591 billion were traded. — VNS