Headline: VN-Index Dives Sharply as Sell-Off Intensifies
Body:
The VN-Index plummeted significantly during the afternoon session today as a significant number of stocks purchased at the lowest point of this downturn entered investors’ accounts. The index declined steadily, hitting its lowest point at 2:25 pm, losing almost 21 points before recovering at the end of the session. Trading volume surged by 69% in the afternoon compared to the morning, indicating an influx of funds to absorb the wave of profit-taking.
The VN-Index closed with a narrower loss of 12.82 points, or -1.08%. The VN30-Index outperformed, falling by only 0.52%, with a notable recovery from its session low of 1.25%. Meanwhile, the Midcap and Smallcap indices declined by 1.24% and 1.16%, respectively.
Trading volume for the VN30 basket rose by 34% today compared to the previous session, reaching almost VND 7,747 billion. Considering the afternoon session alone, trading volume among these blue-chip stocks surged by over 47% against the morning. The inflow of funds suggests a clear focus on buying blue-chip stocks at their lows.
This trend is positive as many blue-chip stocks have witnessed significant price declines during this downturn. Institutional and large investors often actively trade in this segment, and their participation can potentially establish a market bottom. If large-cap stocks remain supported, the VN-Index is likely to stabilize as well.
Despite the weak breadth of the VN30 basket at the closing bell, with only 6 stocks advancing against 24 decliners, the majority of constituents experienced some degree of rebound. Apart from VHM and VIC, which closed at their session lows, all others managed to recover to varying extents. Notably, 15 stocks moved above their intraday lows, settling between 1% and 2% higher. This contributed to the VN30-Index’s better performance relative to the VN-Index. Additionally, key VN30 members such as TCB, FPT, and MWG exerted a more positive influence on the index compared to the VN-Index.
The surge in selling pressure during the afternoon session was anticipated, as today marked the T+2.5 settlement day for stocks bought at the low on April 19th. This session also witnessed the lowest prices in the current downtrend. Admittedly, not all stocks generated positive returns, with many facing significant losses. Early buyers often choose to exit positions as soon as their stocks reach their accounts, and investors with even small profits are quick to realize them. Consequently, combined trading volume on both exchanges skyrocketed by 69% during the afternoon, with a 65% increase on the HoSE.
The VN-Index closed with 168 stocks declining by more than 1%, compared to 112 stocks in the morning session. Notably, only 37 stocks fell by over 2% in the morning, while that number surged to 106 in the afternoon. These statistics indicate widespread downward pressure and justify the sharp declines in the indices, which were not solely driven by pressure on the heavyweights.
Stocks that declined by over 2% contributed 43.4% to the total trading value on the HoSE today. Banking, securities, and real estate stocks dominated this group, with notable performers including MBB (-2.65%), DIG (-4.63%), VIX (-3.5%), VHM (-3.02%), SHB (-2.67%), CTG (-2.48%), VCI (-3.6%), VND (-2.48%), PDR (-5.07%), and NVL (-2.68%). All these stocks had trading volumes ranging from a minimum of VND 200 billion to over VND 700 billion.
The VN-Index’s breadth at the close showed 117 advancing stocks against 360 decliners. However, few stocks with substantial liquidity performed against the trend. MWG, TCB, and FPT were the only three stocks with trading volumes exceeding VND 100 billion and strong price gains. PVP, SCS, NTL, BWE, HVN, IJC, CMG, and PLX were among the few others with trading volumes above VND 10 billion.
Foreign investors resumed net buying in the afternoon but contributed a modest VND 74.7 billion. In the morning session, this group was a net seller, divesting VND 366.6 billion. VHM faced significant selling pressure of -177.3 billion, compared to only -45 billion in the morning session. DIG, MSN, VND, SHB, DXG, PDR, and NLG also encountered notable selling. On the buying side, HPG contributed VND 102.9 billion, MWG VND 90.7 billion, SSI VND 44.6 billion, BID VND 42.8 billion, VCB VND 33.8 billion, DGC VND 30.4 billion, and KDH VND 32.8 billion.
The VN-Index lost 1% today but did not establish a new bottom. The index’s lowest point in this current downturn remains at 1165.99 points, set on April 19th. If the market does not decline further, the likelihood of a sustainable bottom forming increases, although individual stocks may still experience further adjustments.
