Viet Nam’s benchmark VN-Index was unable to maintain its uptrend yesterday as selling pressure continued to hit large-cap stocks.
The VN-Index on the HCM Stock Exchange fell 0.33 per cent to close at 1,056.97 points, down from its intraday peak growth of 0.9 per cent.
Yesterday also marked the second session in which the VN-Index was hit by last-minute selling pressure, a similar pattern to the previous session. It has lost total 0.5 per cent after the last two days.
Market trading liquidity was little changed from Tuesday with more than 161 million shares traded, worth VND5.17 trillion (US$230 million).
Declining stocks dominated the market breadth and outnumbered gainers by 147 to 124 while 59 other stocks ended flat.
Large-cap stocks underperformed as the VN30 Index, tracking the performance of the 30 largest stocks by market capitalisation, inched down 0.14 per cent to 1,046.39 points.
Sixteen of the 30 largest stocks in the VN30 basket declined, including insurer Bao Viet Holdings (BVH), Vietcombank (VCB), consumer goods producer Masan (MSN) and logistics firm Gemadept (GMD).
According to Sai Gon-Ha Noi Securities Co (SHS), sellers have taken over the market trading conditions in the last two sessions, indicating that investor sentiment remains low about the market’s short-term prospects.
“Given low trading liquidity at the moment and the dominance of sellers on the market, the VN-Index shows few signs of improvement over the coming sessions,” SHS said in its daily report.
Of the 20 sectors on the stock market, only four saw share prices rise, which were energy, construction materials production and construction industries.
Among 16 sectors with decreasing share prices were insurance-finance, property development, banking and rubber production.
Bao Viet Securities Co (BVSC) reported that there is still chance for the VN-Index to recover, however, that could be short-lived on the increase of selling pressure in large-cap stocks and lack of cash flow on the market.
Investors remained firmly cautious as they worried the market would continue its downtrend, for the index had been unable to break through the level of 1,070 points, the company said.
BVSC forecast the VN-Index would continue to test the 1,070 point level again today. “If surpassing this level, the VN-Index would head to the short-term range of 1,090-1,125 points.”
On the Ha Noi Stock Exchange, the HNX Index dropped 1.17 per cent to end at 123.86 points, totalling a two-day decrease of 2.1 per cent.
Trading liquidity on the northern bourse declined sharply, with nearly 43.6 million shares traded, worth VND602 billion. — VNS