The morning’s upward momentum driven by cash flow weakened ahead of a large volume of bottom-fishing stocks in the afternoon session. Except for a brief uptick at the start of the session, the majority of the morning session was a downward slide, with breadth also narrowing, indicating selling pressure pushing prices down. Without support from the VHM, VIC, VRE, and GAS pillars, the rate of price decline would have been much faster.
The VHM, VIC, and VRE group came as a big surprise as a strong buying force emerged as soon as the session began, pushing prices up rapidly. VHM hit the ceiling just minutes after opening, while VRE fluctuated at the ceiling price. News of VHM’s share buyback spread across stock market chat rooms, causing a sudden spike in trading volume to nearly 1,084.3 billion VND in the morning alone. After hitting the ceiling, VRE eased slightly to a 5.88% gain, while VIC is up 2.54%.
The significant gains of these three stocks contributed 4.3 points to the VN-Index, while the index lost a total of 2.98 points. GAS’s 1.68% gain added about 0.7 points. This helped mitigate the impact of the other pillars, which fell deeply, with 4 out of the top 10 stocks by index falling more than 1%—BID down 1.39%, HPG down 1.33%, CTG down 1.47%, and TCB down 2.02%.
The VN30-Index ended the morning session down 0.45%, stronger than the main index (-0.25%) with 6 gainers and 22 losers. In addition to the aforementioned pillars, only VNM rose 0.28% and GVR rose 0.8%. The impact of these two stocks was rather muted. In contrast, the number of decliners among the blue-chips was not only overwhelming but also had a large range: 11 stocks fell more than 1%, led by BCM down 2.11%, TCB down 2.02%, and VJC down 1.99%.
The liquidity of the VN30 basket this morning accounted for 64.3% of the total value of the VN30 basket, but 43% was concentrated in 3 stocks: VHM, VIC, and VRE. VHM alone accounted for 19.4% of the entire floor. Meanwhile, VN30 basket trading was down 7% from yesterday morning, and HoSE was down nearly 19%. This means that the liquidity of the remaining stocks decreased significantly.
The decrease in trading volume, coupled with the sliding prices and narrowing breadth, reflects weakening demand. Although the sellers have not dumped a large volume yet, they are gradually lowering the prices. The VN-Index rose to its intraday high at 9:35 am, up 7.51 points, with a breadth of 206 gainers and 120 losers. However, by 10:30 am, there were only 151 gainers and 24 losers, even though the index only turned red after 11:00 am. In other words, stock prices have been sliding on a large scale earlier than what the VN-Index has shown, due to the support of the pillars that are still there (VN30 started turning red from 10:15 am). At the end of the morning session, the HoSE had 120 gainers and 275 losers.
Quite a few stocks are currently showing a notable absence of buying interest. Up to 117 stocks are falling more than 1%, and liquidity is mostly low (40 stocks matched from 10 billion VND and above). In addition to blue-chips with good liquidity and deep declines such as TCB, HPG, and TPB, the rest have small trades. DBC fell 3.23% with 71.7 billion; DGC fell 2.08% with 69.5 billion; PDR fell 2.29% with 57.9 billion; HSG fell 1.91% with 50.3 billion, VIX fell 1.35% with 64 billion; and TCH fell 1.44% with 68.4 billion were the most notable.
The broad decline in liquidity is a result of capital withdrawal. Investors had reasons to reduce buying this morning, even though global stock markets were relatively stable last night. This afternoon, there will be a large volume of bottom-fishing stocks from August 5th settling into accounts, and many codes will have a good advantage. Short-term investors can take profits immediately. While the selling pressure this morning was not strong, there was clearly an early selling demand.
On the upside, there are 120 codes, but very few notable stocks due to low liquidity. Besides the VIC, VHM, VRE, and GAS groups, HNG hit the ceiling with a matched volume of 16.8 billion VND; HQC rose 3.25% with 11 billion; LPB rose 1.62% with 32.2 billion; BWE rose 1.19% with 11.8 billion; and VGC rose 1% with 20.7 billion were the most prominent.
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