Market in sharp decline as investors resume strong net selling

Market breadth on the southern bourse was negative, with 223 stocks declining, 92 advancing and 47 remaining unchanged. Liquidity rose to VNĐ15.9 trillion (US$624.8 million), marking a 13.5 per cent increase compared to the previous session.

The stock market took a sharp downturn on Thursday, with the VN-Index falling below the 1,260-point mark, while foreign investors resumed their net selling.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,257.41 points, down 13.49 points or 1.06 per cent.

Market breadth on the southern bourse was negative, with 223 stocks declining, 92 advancing and 47 remaining unchanged. Liquidity rose to VNĐ15.9 trillion (US$624.8 million), marking a 13.5 per cent increase compared to the previous session.

The VN30-Index, which tracks the top 30 stocks by market capitalisation on the HoSE, also dropped 20.1 points, or 1.49 per cent, to close at 1,329.62 points. Within the VN30 basket, 22 stocks declined, six advanced and two remained unchanged.

The market’s downturn was led by the 'Vingroup' stocks, with Vinhomes JSC (VHM) experiencing the steepest decline, dropping 6.7 per cent and contributing more than 3.1 points to the VN-Index's overall decrease.

This was followed by losses from the Vingroup Joint Stock Company (VIC), which fell 2.66 per cent and Sai Gon Thuong Tin Commercial Joint Stock Bank (STB), down 6.7 per cent.

However, the market's losses were partially offset by gains in some major stocks, led by Viet Nam Dairy Products Joint Stock Company (VNM), which rose 1.63 per cent, contributing nearly 0.6 points to the VN-Index.

Experts from Việt Dragon Securities noted: "The increase in liquidity compared to the previous session indicates that supply pressure remains significant as the market approaches resistance levels. With the reversal signal and the VN-Index falling below 1,260 points, market risks are on the rise. The next support level is around the 1,257-point mark, which coincides with the 20-day moving average (MA20). It is anticipated that the market will find support at this level and experience a technical rebound to test supply once again.

"Investors should observe supply-demand dynamics at the support level to assess the market's condition. For now, it is advisable to maintain portfolio weights at a reasonable level and consider taking advantage of rebounds to restructure portfolios with a focus on risk reduction."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also closed lower on Thursday, dropping 0.8 per cent to 224.69 points.

During the session, nearly VNĐ650 billion worth of shares were traded, with a total volume of nearly 37 million shares on the northern bourse.

Foreign investors returned to their net selling habit, with net sales amounting to over VNĐ234.17 billion on the HoSE