Surprisingly, selling pressure surged in the morning session, especially in the 30 minutes before the break, pushing the liquidity of the two exchanges to the highest level in 12 weeks. Along with that was the observation of a widespread decline in stock prices. Not only domestic investors, but foreign investors also had the highest net selling in the last 10 sessions.
The total trading value of HoSE and HNX in the morning session increased by 57% compared to the previous session, reaching nearly 16,846 billion VND. HoSE increased by 55% with 15,594 billion VND. Unfortunately, this high trading volume is accompanied by very poor breadth: VN-Index ended the morning session down 0.48% (-6.15 points) with only 133 stocks rising and 339 stocks falling.
The market did not start off poorly, but showed clear signs of struggle and weakness. VN-Index had a continuous upward trend in the first hour, reaching its peak at 9:45am with a 7.5-point increase and a breadth of 232 rising stocks/177 falling stocks. By 10:30am, the number of falling stocks had increased to 281, with 172 stocks rising. The breadth narrowed towards the end of the session and the index plummeted.
The above breadth dynamics indicate that this morning’s downturn is not solely due to the impact from key stocks. VN30-Index dropped 0.57% with 9 stocks rising/18 stocks falling, and the stocks in this basket were among the top 10 stocks that exerted the strongest downward pressure. The warning signals started with this group, as the “leading” stocks began to lose steam: MSN failed to rise and encountered strong selling pressure, gradually decreasing in price. This stock closed the session up 0.79% compared to the reference price and had to give back about 1.93% compared to the opening price. VIC even lost 2.88% compared to its high and only gained 0.44%. CTG lost 2.44% compared to its high and reversed below the reference price, currently down 1.1%. A series of stocks such as GVR, BID, ACB, HPG, MWG, SSI, STB, VHM, VNM, VRE… all slid down with large amplitudes compared to the peak level.
The extent of the decline in this morning session reflects a significantly increased selling pressure. With the excitement of yesterday, the market continued to rise in accordance with the psychological trend, but sellers took advantage of this to push prices of many stocks back, creating very high liquidity.
Foreign investors also participated in large-scale selling today and net sold 304.3 billion VND on HoSE and about 44 billion VND on HNX. This is the largest net selling amount in the last 10 morning sessions. Notable stocks that were sold include VIX -117.3 billion net, VHM -113.2 billion, GEX -83.6 billion, VCI -48.7 billion, MWG -31.8 billion, LCG -27.8 billion, VND -22.8 billion, VNM -22.8 billion, VIC -21.2 billion.
HoSE is currently recording 145 stocks that declined by over 1% compared to the reference price, and the liquidity of this group accounts for nearly 69% of the total trading value of the exchange. This is a very high proportion confirming clear restraining pressure from selling. Notable stocks with high liquidity that significantly decreased in price include SSI down 1.47% with 726.5 billion VND; GEX down 3.19% with 673.7 billion; HPG down 1.61% with 580.4 billion; VND down 2.34% with 493.6 billion; MWG down 2.4% with 475.3 billion; NVL down 2.33% with 471.5 billion; VIX down 2.62% with 420.3 billion…
Of all the stocks on HoSE that had a liquidity from 100 billion VND and above in the morning session, 38 stocks declined in which 35 stocks fell by more than 1%. There were 37 stocks that increased by more than 1% and some notable representatives that attracted good money flow include HQC up 6.07% with 173.8 billion VND; SAB up 4.24% with 207.2 billion; LPB up 1.7% with 115.5 billion; TCB up 1.42% with 341.3 billion; GAS up 1.39% with 140.6 billion; PVT up 1.12% with 126.6 billion.
This morning’s reversal reflected the constant profit-taking demand, regardless of whether the VN-Index had exceeded its peak and promised to reach higher milestones. The problem lies in stocks that have experienced sharp short-term increases and prolonged high liquidity. Investors are very excited to pour in money, and that’s when large accounts choose to gradually withdraw.
