Before today's trading session, most securities companies predicted a continued sharp decline for the VN-Index as anticipation for last year's Q4 earnings results subsided. Indeed, the index representing the Ho Chi Minh City exchange traded below its reference level for most of the session. About 30 minutes before closing, the index lost nearly 35 points and broke through the short-term support level of 1,860 points.
Localized buying demand emerged in the oil and gas sector and some banking stocks, helping the index narrow its decline during the closing auction (ATC) session. The VN-Index closed the session at 1,885 points, down 8 points from its reference level.
Red dominated the Ho Chi Minh City exchange, with nearly 250 stocks declining, while fewer than 100 stocks advanced. The large-cap basket also saw strong divergence, with 20 stocks falling, double the number of rising stocks.
The securities sector faced widespread selling pressure after the year-end financial reporting season. HCM hit its floor price of VND 23,750, with nearly 300,000 units in remaining sell orders. Many other companies, such as VIX, SHS, MBS, SSI, and VPX, reported large profits, yet their market prices also fell by over 2.5% today. TCX was a lone bright spot in this group, bucking the trend to rise 1.4% to VND 52,500.
In the banking sector, red dominated. EIB led the declines with a 3.1% fall. VPB, KLB, SSB, MBB, VIB, and TPB followed, each losing over 1.4%. Conversely, STB rose to its ceiling price of VND 62,100, helping the index avoid a deeper fall.
The real estate sector also did not escape the strong selling wave. Shares of many major developers, such as Nam Long, Khang Dien, Dat Xanh, and Novaland, were in the red, with declines ranging from 1-3%.
The oil and gas sector was the only group to record simultaneous gains. Its component stocks all fell this morning but reversed course in the final minutes. BSR hit its ceiling price of VND 22,200, with nearly 4 million units in remaining buy orders. GAS, PVD, POW, PVT, OIL, and PLX accumulated gains of 0.5-5%.
Market liquidity slightly increased compared to yesterday, reaching nearly VND 36,500 billion. The large-cap basket contributed VND 20,000 billion. VIX topped the liquidity rankings with over VND 2,000 billion traded, followed by HCM (VND 1,873 billion) and STB (VND 1,581 billion).
Foreign investors extended their net selling streak to a second session. This group disbursed VND 3,560 billion but sold over VND 3,800 billion, focusing on HCM, DXG, and VIX.
Analysts at Vietcombank Securities noted that the market is under pressure to fluctuate around the 1,900-point region. Cash flow is currently seeking investment opportunities and rotating among sectors that have not seen strong growth recently, such as seaports and consumer goods.
"Investors should closely monitor market developments in the upcoming sessions and exercise greater caution when making new purchases. It is advisable to capitalize on intra-session fluctuations for short-term trading objectives with stocks already in their portfolios," the group recommended.
Phuong Dong
