Expectations of a post-holiday market rally fizzled out this morning, as trading proceeded with utmost caution amid wafer-thin liquidity. The large-cap stocks failed to provide any meaningful lead, managing only a feeble balance, while foreign investors offloaded a net amount of VND425 billion on the HoSE, the highest in the last seven morning sessions.
The VN-Index even dipped below the reference point in the first few minutes of trading, before recovering. However, at its peak, the index only managed to gain less than 5 points from the reference point. The market reversed in the latter half of the morning session, with the VN-Index closing at a loss of 1.57 points, equivalent to -0.13%.
Sluggishness among the pillar stocks was the primary factor keeping the market in a state of limbo. Some of the largest tickers only displayed short-lived bursts of growth, temporarily buoying the index, before succumbing to declines. For instance, VCB reached an intraday high of 1.43% above the reference point, but by the end of the session, it had only gained 0.22%. GAS similarly reached a peak of 1.09% before settling at a 0.27% increase. BID even fell below the reference point, dropping by 1.01% to -0.61%. Of the 10 largest capitalized stocks on the market, only FPT showed any significant growth, rising by 3.33%. This stock remains the strongest pillar of the VN-Index, although it has also declined considerably from its intraday high of 4.71%.
VCB, GAS, and TCB were the only three stocks in the top 10 with market capitalization to close in the green, but their gains were marginal, hovering around 0.2%. CTG lost 1.83%, VIC decreased by 1.24%, and VPB fell by 1.08%, making them the weakest performers.
The VN30-Index closed the morning session with a modest gain of 0.07% compared to the reference point, with 14 stocks rising and 14 falling. The trading range was quite wide, with the VN30-Index reaching an intraday high of 0.61%. The strength of FPT, MWG, SHB, and POW helped keep this index in the green, despite its limited impact on the VN-Index.
Securities stocks continued to reflect the disappointment over the KRX system’s delayed May launch. As many as 21 stocks in this group fell by more than 1% compared to the reference point, including blue chips such as SSI (-1.99%), VCI (-2.34%), HCM (-2.96%), MBS (-2.22%), and CTS (-2.82%). SSI and VCI faced particularly strong selling pressure, with significant trading volumes of VND260.1 billion and VND141.1 billion, respectively.
Market breadth clearly reflected the cautious sentiment. Initially, the number of declining stocks significantly outnumbered gainers, but buying pressure in the mid-session pushed prices up, not only lifting the VN-Index but also turning market breadth positive, with 230 stocks rising and 188 falling. In the second half of the morning session, market breadth gradually narrowed, closing at 194 gainers and 241 decliners. On the positive side, the extent of declines was not excessive, with only 86 stocks on the HoSE losing more than 1%, accounting for about 33% of the total trading value on the exchange. On the other hand, overall liquidity remained low, with trading volume only marginally higher than the last session before the holiday, reaching nearly VND7,803 billion.
The tug-of-war continues in the wake of recent macroeconomic data. Figures from not only Vietnam but also the US and the Fed’s meeting indicate that inflationary pressures remain elevated and interest rate cuts are unlikely in the near future. This does not encourage a more aggressive inflow of capital.
Foreign investors sold off across all three exchanges this morning, with the HoSE bearing the brunt of their activity, at -VND425.6 billion. MWG remained a standout with a net buy of VND182.3 billion, but this was an isolated case. Foreign investors sold a wide range of stocks, including SSI (-VND83.6 billion), DIG (-VND55.8 billion), CTG (-VND39.2 billion), VCI (-VND30.5 billion), VRE (-VND29.4 billion), HPG (-VND23 billion), VPB (-VND21.7 billion), DGC (-VND21 billion), and HDB (-VND29.3 billion).
This marked the third consecutive selling session by foreign investors, despite signs of easing exchange rates. This morning, Vietcombank’s USD selling price dipped further to VND25,454/USD, marking the third consecutive day of decline since the peak of VND25,488/USD on April 23.
The VN-Index’s recovery momentum has yet to regain traction after the surge on April 24, but selling pressure remains subdued. While short-term gains remain attractive, investors are still adopting a cautious approach to trading.
