The stock market experienced a highly enthusiastic session this morning, with the VN-Index peaking just five minutes after the opening bell, surging by 0.95%, equivalent to over 12 points. Aggressive buying met with substantial profit-taking, pushing liquidity to its highest level in 20 sessions. However, by the end of the morning session, the index had narrowed more than half of its gains, rising only 5.65 points.
The total matched orders on the two listed exchanges reached VND13,488 billion, a 19% increase compared to the previous session. HoSE alone saw a 21% increase, with VND12,452 billion. This significant trading volume reflects the enthusiasm of investment funds, despite the VN-Index entering the old peak region of March 2024.
However, intra-session developments indicate substantial profit-taking, and after hovering in the upper region for about half a session, prices began to weaken. The VN-Index, which initially rose over 12 points, ended the morning session up only 5.65 points. But it’s not just the index; stocks have also lowered their highs significantly. Firstly, the breadth narrowed gradually: at 10:00 am, the VN-Index had 324 gainers and 69 losers. At 11:00 am, it was 325 gainers to 97 losers. However, by the session’s close, it stood at 269 gainers to 139 losers. Secondly, downward price volatility within the green region was prevalent, with 53% of HoSE-traded stocks falling by a minimum of 1%.
Many “hot” stocks witnessed substantial trading volumes with notable declines from their intraday peaks. HAG, initially up 4.79%, ended the session up only 1.03% with a turnover of VND271 billion. FRT plunged 3.34% from its daily high and even turned negative, falling 0.3% with a turnover of VND111.5 billion. TCH fell 2.73%, ending the session up 3.16% with a turnover of VND202.4 billion. VSC, TCH, MWG, PC1, and GVR were among the heavily traded stocks, with transaction values in the hundreds of billions and significant price declines.
The intraday price movement, characterized by a sharp rise followed by weakness, often indicates profit-taking pressure. The vast majority of stocks started to slide deeply in the last 30-45 minutes of the session. Before that, the market was mostly range-bound, and most of the gains occurred at the beginning of the session. In other words, the market, in general, and many stocks, in particular, were hindered from rising further, after which selling pressure gradually increased, pushing prices downward.
Despite the positive breadth, indicating that selling investors are still “culling” prices within the green region, the high liquidity of the 20 sessions also reflects the impatience of investors with excess cash or those who missed this rally and are now willing to buy.
The VN30-Index ended the morning session up 0.42% from its reference level, down from its intraday peak of 0.91%. Breadth remained favorable, with 21 gainers and seven losers, but only BCM managed to close at its intraday high, with the rest sliding. Pillar stocks witnessed notable declines from their peaks: VIC lost 1.89% from its high and turned negative, falling 0.43% from its reference level. VHM plunged 1.33%, ending the session down 0.37%. VCB initially showed strength but ended the session up only 0.11%, giving back 1.18% to the market. TCB fell 1.09%, ending marginally higher by 0.4%. Statistics show that 17 out of 30 VN30 stocks lost more than 1% from their intraday peaks.
Although the breadth within the VN30 basket was positive, only five stocks rose more than 1%: BCM, HDB, MWG, GVR, and VPB. Among them, VPB was the only stock in the Top 10 market capitalization. While HDB joined VPB in the banking sector, the remaining large-cap banks showed weakness. EIB, BAB, BVB, and PGB were among the gainers, rising over 1%, but their impact was negligible.
Currently, the VN-Index lacks a clear sector or stock leadership, with individual stocks taking turns to lead the market each session. This dynamic is unfavorable as the index attempts to break through the old peak: the VN-Index’s intraday high today was 1,285.19 points, while the peak reached in March was 1,293.9 points.
Foreign investors also took advantage of the session to lock in profits: net selling on the three exchanges totaled VND752 billion, with HoSE alone seeing outflows of VND608.1 billion. This was the highest net selling in seven days. Stocks that witnessed substantial outflows included VHM (VND92.3 billion), MWG (VND79.6 billion), VNM (VND76.1 billion), HPG (VND58.2 billion), VPB (VND57.2 billion), KBC (VND36.6 billion), HSG (VND33.6 billion), CMG (VND26.2 billion), DGC (VND25.1 billion), VND (24.3 billion), and CTG (VND23.7 billion). On the buying side, DBC and EIB stood out with net purchases of VND46.8 billion and VND28.2 billion, respectively. Specifically, the VN30 basket saw net outflows of VND409.3 billion in the morning session, with foreign selling accounting for 15.6% of the basket’s trading volume.
