HÀ NỘI — The stock market declined on Thursday due to selling pressure from banking stocks, with the VN-Index retreating to 1,245 points. Liquidity dropped to its lowest level since March 2023, while foreign investors continued their net-selling trend across both exchanges.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,245.77 points, down 5.25 points or 0.42 per cent. Market breadth remained negative, with 204 declining stocks, 100 advancing and 50 unchanged.

Trading liquidity plunged to approximately VNĐ7.5 trillion (US$295 million), marking a 26.5 per cent decrease compared to the previous session. This was the lowest level recorded since March 2023.

The VN30-Index, which tracks the 30 largest-cap stocks on the HoSE, also fell by 5.83 points, or 0.44 per cent, to 1,310.8 points. Within the VN30 basket, 21 stocks declined, seven advanced and two remained unchanged.

The overall market decline was primarily driven by blue-chip banking stocks. The Ho Chi Minh City Development Joint Stock Commercial Bank (HDB) experienced the steepest drop, falling 4.08 per cent and erasing nearly 0.8 points from the VN-Index.

Other notable laggards included the Bank for Foreign Trade of Vietnam (VCB), which declined 0.54 per cent, and the Bank for Investment and Development of Vietnam (BID), which dropped 0.99 per cent.

However, gains in select large-cap stocks helped limit broader losses. The Vinhomes JSC (VHM) rose by 1 per cent, contributing 0.4 points to the VN-Index. Additionally, the Vingroup Joint Stock Company (VIC) increased by 0.62 per cent, while the Vietnam National Petroleum Group (PLX) gained 1.83 per cent. The FPT Corporation (FPT) also advanced by 0.34 per cent.

Analysts from Việt Dragon Securities commented: "The market displayed weak performance but remained supported around the 1,245-point level, as indicated by a hammer candlestick pattern. Liquidity decreased to a record low, reflecting cautious sentiment, though supply-side pressure is not significant at present.

"Supply and demand dynamics are expected to continue in the next session. Despite the current weak signals, slight support could provide momentum for the market to recover and move towards the 1,260-point region. Investors can still expect market support and short-term opportunities in stocks with favourable movement from support zones. However, it is crucial to monitor recovery progress and consider short-term profit-taking for stocks that have risen sharply to resistance zones or to rebalance portfolios, " they added.

On the Hà Nội Stock Exchange (HNX), the HNX-Index rose slightly by 0.03 per cent, closing at 221.94 points. Trading value on the northern exchange surpassed VNĐ638 billion, with a trading volume exceeding 39.3 million shares.

Foreign investors continued their net-selling trend, offloading over VNĐ439 billion worth of shares on the HoSE and VNĐ16.7 billion on the HNX. — VNS