Over the past few weeks, there has been a significant adjustment in the banking stock group, which unexpectedly created an advantage as money flowed in to buy at the bottom. From around 10:15 a.m. onwards, banking stocks began to surge, quickly pushing the VN-Index above the reference level. Out of the top 15 most liquid stocks in the market, 8 of them were banking stocks, showing the strength of this group’s rally. However, foreign investors took advantage of the opportunity to sell the most in the past 14 weeks.
Out of the 27 banking stocks listed on various exchanges, only 4 were in the red, namely SSB, EIB, HDB, and NAB. The influence of these stocks was not significant, while most of the blue-chips in the group gained strongly. Leading the index were TCB with a gain of 3.23%, MBB with a gain of 3.23%, VCB with a gain of 0.76%, CTG with a gain of 2.1%, and VIB with a gain of 4.98%. Out of the top 10 stocks in the VN-Index, 8 were banking stocks, while the remaining 2 were GAS with a 1% gain and MWG with a 4.18% gain.
The strong recovery of banking stocks this morning is actually a consequence of the previous adjustment. Banks experienced a decline earlier than the VN-Index and many stocks fell relatively deeply. For example, VCB dropped from its peak of VND 100,500 to VND 92,500 yesterday. CTG reached its highest point in early March at VND 36,950 and hit its lowest point in the past 2 sessions at VND 32,350… In general, a sharp decline in the short term tends to stimulate greed.
However, it does not mean that the banking group was not sold off. In the last 15 minutes of the morning session, there was a large amount of selling, hindering the price increase of many stocks in this group. MBB retreated by 1.84% from the peak, VIB fell by 1.69%, TPB fell by 1.3%, CTG fell by 1.45%… Stocks like ACB, BID, VPB also had to give back more than 1% from their peak, while the rest of the stocks declined to varying degrees.
The impact of the banking group obviously had a better effect on the VN30-Index than the VN-Index. The index of blue-chips closed the morning session with a gain of 1.02%, while the VN-Index gained 0.5% (+6.26 points). The reason is that the market capitalization weight of banking stocks such as TCB, MBB, VIB, ACB in VN30-Index is higher. In addition, the breadth of VN30 is quite good with 19 gainers/9 decliners. However, besides banking stocks, only MWG is worth noting.
The pull of the banking group has had a positive impact. The VN-Index hit its low at 10:08 a.m., dropping 7 points, with only 112 gainers/262 decliners. By the end of the session, the breadth improved to 229 gainers/206 decliners. Midcap stocks gained 0.25%, Smallcap stocks fell 0.24%, and the entire HoSE had only 57 stocks gaining over 1%. So the spread has only changed the color of prices and has not increased in magnitude because most stocks outside of blue-chips have recovered much later.
In the best-performing group mentioned above, there were not many notable stocks apart from the banking stocks. VCI increased by 1.38% with a trading volume of VND 172.8 billion; GEX rose by 1.11% with VND 117.5 billion; PC1 increased by 1.61% with VND 108.7 billion; PVD rose by 1.43% with VND 77.4 billion; HAG rose by 1.27% with VND 70.8 billion; DGW increased by 1.56% with VND 61.2 billion; AGG rose by 1.52% with VND 24.8 billion…
Market liquidity this morning relied heavily on banking stocks. The total trading volume on HoSE decreased by 2% compared to yesterday morning, reaching VND 9,121 billion, of which 33.4% was trading of banking stocks. This is a very high proportion because in the past 4 weeks, this group has been “neglected”, with money clearly being withdrawn and the average liquidity ratio only ranging from 13% to 15% of the market.
This also shows that the flow of money has slowed down in other stocks. The total trading volume on both exchanges was approximately VND 9,700 billion, the lowest in 17 sessions. Without the increased trading in banking stocks, the overall liquidity today would be even lower.
However, this morning’s upward trend also had a positive aspect, reflecting the still enthusiastic reaction, although initially only due to the resurgence of banking stocks. In the afternoon, there will be a large volume of stocks coming into accounts and investors are still willing to accept higher prices in the final minutes of the morning session.
This morning, foreign investors took advantage of a strong sell-off, withdrawing approximately VND 528.7 billion from HoSE. This is the largest morning selling spree since the beginning of December 2023. However, out of this amount, there was a significant net selling of FUEVFVND fund certificates worth VND 192.7 billion. The stocks that were heavily sold included SSI with a negative VND 33 billion, BID with a negative VND 31.2 billion, VNM with a negative VND 30.5 billion, MWG with a negative VND 21 billion.
