The Vietnamese stock market witnessed a sharp decline this morning, with the VN-Index plunging by almost 10 points in the first few minutes after the opening bell. This triggered a surge in selling pressure, evident from the 23% increase in trading volume on the HoSE. Foreign investors offloaded a massive 2.136 trillion dong, resulting in a net sell-off of 1.921 trillion dong on the HoSE.
The initial 15 minutes after the opening showed some resilience, with the VN-Index peaking at a 4-point gain by 9:30 am. However, from then until 11:10 am, the market experienced a prolonged downward trend, dipping to a maximum loss of 5.4 points. The breadth of the market deteriorated, with only 160 stocks advancing against 253 declining ones.
The HoSE witnessed a significant surge in trading volume, surpassing 8.490 trillion dong, the highest in the last ten sessions. This high volume coupled with widespread stock price declines signaled heightened selling pressure.
Foreign investors offloaded a record-high of 1.921 trillion dong worth of stocks on the HoSE, surpassing the previous record of 1.185 trillion dong set on March 27, 2024. This sell-off was concentrated in the VN30 basket, with a net sell-off of nearly 1.598 trillion dong. Notable stocks that witnessed heavy selling included HDB (-491.5 billion dong), STB (-289.2 billion dong), SAB (-189.2 billion dong), MWG (-157.8 billion dong), FPT (-127.6 billion dong), SCS (-118.4 billion dong), VRE (-67.9 billion dong), and HGP (-67.7 billion dong), among others.
The sell-off by foreign investors weighed heavily on the blue-chip stocks, as reflected in the VN30-Index’s 0.27% decline. In contrast, the Midcap and Smallcap indices posted gains of 0.23% and 0.47%, respectively. By the end of the morning session, 16 stocks in the VN30 basket were in the red, with SAB, BVH, STB, and VRE experiencing notable declines. Eighteen out of the 30 stocks in the VN30 basket witnessed price declines of more than 1% from their intraday highs.
Mid-cap and small-cap stocks fared relatively better, with 75 stocks posting gains of over 1%. However, even the best-performing stocks in this category, such as DCM (+4.53%), HSG (+1.4%), HDG (+2.54%), HAH (+1.2%), and TCH (+1.02%), witnessed profit-taking pressures, preventing them from climbing higher.
On the downside, out of the 234 declining stocks, only 60 witnessed losses of more than 1%. Stocks like DXG (-3.33%), STB (-1%), VRE (-1.44%), VHM (-1.17%), DIG (-1.3%), and KDH (-2.61%) witnessed notable declines.
The combined trading volume of the two main exchanges surged by 24% compared to the previous session, reaching 9.212 trillion dong. This high volume and widespread price declines indicate a substantial sell-off. After five consecutive weekly gains, investors have been encouraged to lock in profits, leading to this bout of profit-taking. While the selling pressure has not pushed stock prices too deeply into negative territory, it does signal a potential larger wave of selling, given the low accumulation during the previous uptrend.
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