The morning session saw a halt in the rally as selling pressure increased at higher price levels. Not only did the VN-Index show signs of hesitation, but most stocks were also gradually pushed lower, leading to a more than 24% increase in trading volume on both exchanges.
The VN-Index reached its highest point in the first 30 minutes, but only managed to increase by around 6 points (+0.46%). By the end of the morning session, the index had only gained 2.15 points (+0.17%). This is clearly a significant difference compared to the nearly 26-point record set yesterday.
The main reason continues to be the weakness of blue-chip stocks. The VN30-Index spent most of its time in the red with a dominant downward trend. Yesterday, the VN-Index soared partly due to the simultaneous increase in the share prices of constituent stocks. This morning, out of the top 10 largest stocks by market capitalization, 6 saw a decline. The gainers were VHM, up 1.4%, GAS, up 2.15%, VIC, up 2.22%, and FPT, up 0.43%.
Real estate and oil stocks emerged as supports counterbalancing the downturn in the banking sector. Out of the 27 stocks in this sector on both exchanges, only 3 saw an increase, namely ABB, VAB, and PGB, all of which had little impact. All banking stocks in the VN30 basket, except for SSB, saw declines. The stocks that fell by around 1% included TPB, CTG, and BID, all of which have large market capitalization.
The oil sector was active this morning, with PVT hitting its daily limit and setting a liquidity record in the past 23 months, reaching VND 318.2 billion and 11.24 million shares traded. PVD also saw a 6.38% increase with the 6th highest trading volume on the market, reaching VND 377.1 billion. In the blue-chip group, GAS increased by 2.15%, and PLX increased by 1.75%. Apart from PVT, all of the aforementioned stocks were in the top 10 stocks that contributed to the VN-Index’s points. The remaining stocks, such as PVB, POS, PTV, PVS, PVC, PSH, BSR, OIL, increased from 2% to 8%.
The real estate sector also showed signs of strength in the context of the Government meeting to find solutions to address difficulties in this industry. The VNREAL index on the HoSE exchange closed the morning session with a 1.26% increase, slightly lower than the energy sector’s 5.16% increase. Of course, VIC and VHM stood out among real estate stocks due to their large market capitalization. In terms of amplitude, the average to small capitalization group saw strong increases, such as KBC up 4.56%, HDG up 2.57%, HQC up 2.53%, and ASM up 2.18%…
By the end of the morning session, market breadth remained balanced with 229 gainers and 213 losers. However, this is a less positive outcome compared to the beginning of the session. The afternoon excitement initially led to a dominant uptrend, with 263 gainers and 162 losers in the VN-Index as of 10:30 AM. The narrowing of the uptrend and the increasing number of losers indicate a stronger selling pressure towards the end of the session. The VN30 group even saw multiple stocks reversing their gains, with some experiencing a decline of over 2% in the morning, such as BCM, BID, MWG, and several others with over 1% reversals.
Expanding to the entire HoSE exchange, about 40% of the stocks that traded this morning experienced at least a 1% decline from the morning high. Of course, when breadth remains balanced, not all stocks fall below the reference price. However, as the sudden increase in amplitude yesterday allowed bottom-fishing investors to profit handsomely, a trend of quick profit-taking is likely to emerge.
Trading volume on both exchanges this morning increased by over 24% compared to yesterday morning, reaching VND 15.494 trillion, the highest level since the beginning of the week. HoSE witnessed a 17% increase to reach VND 13.465 trillion. The larger trading volume coupled with more significant price declines suggests strong selling pressure. Of course, in an upbeat market, investors can choose to sell at higher price levels rather than resorting to panic selling.
Translated by AI
