Shares drop for three straight days because of prevailing sentiment of caution and indecision

Friday, Apr 05, 2024 16:32

A production line of dairy firm Vinamilk (VNM). VNM lost 0.4 per cent yesterday. — VNA/VNS Photo

The VN-Index hit three days of continuous decline on Friday, as many prominent stocks unexpectedly losing value during the session, influenced by an overall market sentiment characterised by caution and indecisiveness.

The VN-Index on the Hồ Chí Minh Stock Exchange lost 1.04 per cent to close 1,255.11 points, totalling a three-day fall of 2.5 per cent.

Nearly 1.1 billion shares were traded on the southern bourse, worth more than VNĐ25.2 trillion (US$1 billion).

The large-cap VN30-Index dropped 0.78 per cent to end at 1,257.78 points with 26 of the 30 largest stocks by market capitalisation declining.

The market found support as it retreated to the 1,265-point level, but the recovery remained quite weak, forming a bearish trend. Trading liquidity decreased compared to Thursday’s, indicating that overall market was still cautious and indecisive, said Việt Dragon Securities Co.

"It is expected that the market will continue to explore supply and demand around the 1,265-point level before clearer signals emerge. Therefore, investors should be cautious of the increasing risks and reassess the market situation. At the same time, it is necessary to manage the portfolio in a way that minimises risks.

"It is advisable to consider profit-taking or reducing exposure to stocks facing difficulties at resistance levels to prevent risks. Currently, priority may be given to stocks showing positive signals from support levels."

Friday witnessed a persistent decline in the VN-Index spanning three consecutive days, as a number of prominent stocks unexpectedly experienced a loss in value by the conclusion of the trading session, said

This downward trajectory was primarily influenced by the prevailing sentiment of caution and indecision looming the market. Investors, grappling with uncertainty regarding market trends and developments, exhibited hesitancy and reluctance to make significant trading decisions. The prevailing atmosphere of uncertainty and apprehension ultimately exerted downward pressure on the VN-Index, causing it to register a sustained decline over the course of the three-day period.

Real estate, securities, information and technology, retail, banking, food and beverage, seafood processing, and construction were the sectors that weighed down the stock market.

Pillar stocks were strongly hit, including Vinamilk (VNM), Vingroup (VIC), Military Bank (MBB), Masan Group (MSN), FPT Corporation (FPT), Bank for Investment and Development (BID) and Novaland (NVL).

The HN-Index on the Hà Nội Stock Exchange lost 1.14 per cent to 239.68 points.

Nearly 126.7 million shares were traded on the northern bourse, worth VNĐ2.6 trillion. — VNS

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