Yesterday’s positive trend could not be sustained, as the market was only green for a few minutes before falling sharply. The VN-Index closed the morning session at a lower level, with the number of decliners exceeding the number of gainers by 2.5 times. The liquidity of the two bourses reduced by 10% compared to yesterday morning. Notably, all stock groups that surged in the previous session cooled down rapidly.
The VN-Index closed the morning session down 5.95 points, equivalent to -0.5% compared to the reference. The highest peak at 9:55 AM saw the index rise by 2.6 points. However, throughout the session, the breadth of the market remained negative. Even when the VN-Index reached its peak, it still had a ratio of 166 gainers to 184 decliners. At the close of the morning session, the HoSE recorded 121 gainers versus 298 decliners.
The market cooled down very quickly this morning. For instance, the stock group of securities companies, which performed well in the previous session, turned negative this morning. Only TVB, HAC, SBS, HCM, and TVS managed to stay in the green. Up to 22 stocks in the sector are currently decreasing by more than 1%, including large caps such as MBS, CTS, SHS, and VCI.
Bank stocks followed a similar trend. TCB was the only survivor among the blue-chips, with a notable increase of 2.76%. VPB and STB, the other two bank stocks in the VN30 basket, only rose by 0.27% and 0.72%, respectively. The list of blue-chip decliners includes VCB, MBB, BID, SHB, CTG, and HDB. TCB led the gainers, boosting the index, while BID led the decliners, weighing down the index.
The VN30-Index closed the morning session with a slight increase of 0.05%, but the negative breadth was overwhelming: 22 stocks declined, compared to only six gainers. The reason for the index’s green status was primarily due to the influence of TCB, which contributed nearly 2.8 points. BID, on the other hand, had a limited impact. MWG and FPT, which gained 2.37% and 1%, respectively, were the pillars of VN30-Index, while providing weak support to VN-Index.
With the overwhelming negative breadth, the VN-Index’s modest decline of 0.5% does not fully reflect the extent of the price drop within the stocks. On the entire HoSE floor, 112 stocks declined by more than 1%, and the liquidity of this group accounted for over 36% of the total matching value of the exchange. Nevertheless, there were not many stocks with significant selling pressure. MBB, DIG, VIX, SHB, and CTG were the only stocks with a liquidity of over VND100 billion and a price decrease of more than 1%.
On the positive side, 43 stocks experienced growth of over 1%, with the liquidity concentration at around 23% on the floor. This group traded in thin volume and was focused on a few specific stocks, such as MWG increasing by 2.37% with a liquidity of VND462 billion, TCB increasing by 2.76% with a liquidity of VND443.7 billion, FPT increasing by 1% with a liquidity of VND185.1 billion, MSB increasing by 1.11% with a liquidity of VND47.1 billion, and SZC increasing by 1.77% with a liquidity of VND45 billion.
A notable factor this morning is that liquidity continued to decline significantly. The two bourses only successfully matched a total value of VND6,273 billion, a 10% decrease compared to yesterday morning. Specifically, HoSE had a liquidity of VND5,890 billion, down 7%. Low liquidity and weak prices, evidenced by the negative breadth and the significant price decline of many stocks, indicate that lack of support from cash flow is a prevalent issue. Investors refrained from chasing prices after yesterday’s recovery session.
This hesitation may be attributed to the uncertainty regarding the market’s ability to establish a solid bottom. After a week of decline exceeding 100 points, a recovery of a few dozen points is not particularly remarkable and may be considered merely a technical bounce. Moreover, shares purchased at the lowest price point of the current bottom will be available in accounts this afternoon. Many of these shares are showing a profit of 1-2%, making them vulnerable to quick profit-taking. Therefore, investors who wish to buy may want to wait for a deeper price correction in the afternoon session.
After two sessions of significant net purchases, foreign investors, who were motivated by the State Bank of Vietnam’s sale of USD to cool the exchange rate, returned to a state of strong net selling this morning. The net sales value on the HoSE exchange was approximately VND366.6 billion. The most heavily sold stocks include DIG (-VND51.9 billion), VHM (-VND45 billion), VND (-VND23.3 billion), VIX (-VND20.8 billion), and GMD (-VND20.8 billion). On the buying side, SSI contributed VND25 billion, and CRE contributed VND20.1 billion. Regarding the exchange rate, despite the State Bank of Vietnam’s announcement last weekend that it was willing to intervene by selling USD, the official exchange rate continues to rise daily. At the beginning of the week, Vietcombank’s selling rate was VND25,485/USD, higher than the end of last week at VND25,473/USD. By noon today, the exchange rate had further increased to VND25,488/USD.
