The VN-Index opened in the green today but quickly reversed course, remaining in the red for the rest of the session. Selling pressure on some leading stocks caused the index to lose more than 20 points at one point. Bottom-fishing demand appeared in the final minutes, narrowing the decline and pulling the index close to the 1,720-point support level. This marks the lowest price range in over two months.
Four Vingroup-related stocks closed below their reference prices, significantly impacting the index. VIC caused the VN-Index to lose over 10 points, while VHM erased nearly 4 points.
Before the first trading session of the week, some analysis groups had identified 1,720 points as a psychological support level for investors, acting as a strong barrier. A breach of this level could lead to significant widespread correction pressure, potentially pushing the index down to 1,670 points. Despite the overall decline, the market showed signs of improvement, with 154 rising stocks outnumbering 148 falling stocks. According to Yuanta Vietnam Securities Company, this indicates existing bottom-fishing demand that lacks broad momentum for a full market recovery.
By sector, oil and gas stocks underperformed. Most constituent stocks closed below their reference prices after oil prices fell. This followed US President Donald Trump's announcement that Russia and Ukraine agreed to stop attacking each other's energy infrastructure. PLX and OIL saw the most significant declines, both losing about 3%. The retail group also experienced a downturn, with MWG, FRT, and DGW all seeing declines, though the magnitude was not significant. PNJ reversed from hitting its ceiling price late last week to falling its full limit early this week, dropping to 18,150 VND. Over 19 million shares of PNJ were traded, with a pending sell volume at floor price exceeding 250,000 shares.
Conversely, the steel group showed positive signals. NKG at one point hit its ceiling price, then narrowed its range and closed with a 6.9% increase. HPG and HSG also gained 3% compared to their reference prices. Banking stocks showed mixed performance. Gainers included SHB, VPB, and ACB with gains over 1.5%. Conversely, losers included BID, STB, LPB, MSB, and SSB.
Liquidity on the Ho Chi Minh City stock exchange reached nearly 13,000 billion VND, only half of the previous week's final session. VPB topped the trading volume chart with 750 billion VND, followed by TCB and HPG. Foreign investors extended their net selling streak to 14 consecutive sessions, focusing on offloading PNJ and VIX stocks with volumes of about 4-5 million units.
In a strategy report published today, the Research Department of MB Securities Company stated that seasonal factors are heavily influencing the market. October is often the period with the weakest annual performance. The company recommended that "given the historically challenging trading conditions of the October seasonality factor, investors should abandon the mindset of 'trading sector waves' or buying based on general indices." The preferred strategy during this period is to focus on re-structuring portfolios towards individual stocks with strong Q3 profit growth from core operations, or sectors that have seen deep declines and are attracting bottom-fishing money.
Phuong Dong
