Vietnamese stocks slipped on Monday, with banking shares extending falls and securities stocks tumbling, pressuring the indices amid a strong selling force.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index dropped 0.69 per cent to close at 1,260.43 points.
The index had gained 0.54 per cent last week.
Market breadth was negative with 326 decliners and 130 gainers.
Some 619.4 million shares were traded on the southern exchange, worth VND14.8 trillion (US$632.1 million).
The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, lost 0.73 per cent to reach 1,285.45 points. In the basket, three stocks climbed, one stayed flat and 26 slid.
Banking stocks lost ground with most of the stocks in the basket declining, including Vietinbank (CTG), Asia Commercial Bank (ACB), Vibank (VIB) and Tien Phong Bank (TPB), National Commercial Joint Stock Bank (NVB), Vietcombank (VCB), VPBank (VPB), Military Bank (MBB), Bank for Investment and Development of Vietnam (BID), Techcombank (TCB) and Sacombank (STB).
The securities group was also hit strongly with two giants SSI Securities Inc (SSI) and VNDirect Securities Co (VND) dropping 1.8 per cent and 1.9 per cent, respectively.
The market lost the upward momentum above the 1,280 resistance area and retreated because the high price demand was still cautious, said Viet Dragon Securities Co.
“However, the market recorded a hike in bottom-fishing cash flow when VN-Index plunged to the support zone of 1,262-1,268 points and the area of 1,290 for VN30-Index. With this short-term support move, the market still has a chance to be supported and regained,” the company said.
“Currently, VN-Index still recorded a low-priced buying movement of cash flow when the index dropped to the Gap range of 1,262 – 1,268 points. With the signal of supporting money flow still remaining, it is expected that VN-Index will continue to be supported at this area."
Although there is a possibility of a rally, the market may still face great supply pressure in the near future. Therefore, investors should still limit chasing and waiting to take profits.
The HNX-Index on the Ha Noi Stock Exchange (HNX) lost 1.08 per cent to close Friday at 294.73 points.
The index had dropped 1.8 per cent last week.
Nearly 102.8 million shares were traded on the northern exchange, worth VND2 trillion. — VNS