The two large-cap stocks, VIC and VHM, stood out with their notable price increases within the group of pillar stocks this morning. However, this contrasted sharply with the widespread red across the stock market. The tug-of-war dynamic between investors and these pillar stocks heightened concerns, leading to a surge in sell-offs. By the end of the morning session, the number of declining stocks tripled the number of advancing ones.
The VN-Index closed the session with a loss of 4 points, equivalent to -0.31%, and a narrowing breadth of 91 gainers versus 278 losers. The market is at risk of a “pull-and-dump” scenario, as there was a moment when the index rose by nearly 3 points around 10:20 am. Even during the green period, the breadth remained weak, with 84 gainers and 191 losers.
This phenomenon of a “green shell, red core” is often observed when there is a significant influence from the pillar stocks. VIC and VHM were the most prominent performers. VIC briefly touched its daily limit-up price and is now up 6.88% above the reference price (one tick below the limit-up price). VHM, at its highest, gained 4.44% compared to the reference price and is currently up by 2.96%. Besides these two stocks, the VN30 basket also included VRE, which rose by 1.76%, SAB with a 1.06% increase, PLX up by 0.93%, and FPT with a minimal gain of 0.08%.
Attributing the market movement solely to “pull-and-dump” tactics might not be entirely accurate, given the substantial inflow of funds into VIC and VHM. If it were simply a case of pulling up prices to dump later, the cost would be exorbitantly high. This morning, VHM witnessed a remarkable trading volume of VND 581.5 billion, while VIC reached VND 463.6 billion, ranking second and third, respectively, in terms of liquidity across the entire market. VRE also posted significant trading activity, with a volume of VND 206.3 billion, securing a spot in the market’s top five.
Nevertheless, investors responded with strong negativity. The vast majority of stocks experienced intense selling pressure and declined in price. Out of the 278 stocks in the red this morning, 100 stocks fell by more than 1%, accounting for 35% of the total trading volume on the HoSE. Several stocks witnessed apparent sell-offs, including MWG, which dropped by 2.72% with a trading volume of VND 687.8 billion; PNJ, declining by 1.66% with VND 157.1 billion; SSI, down by 1.33% with VND 148.4 billion; HCM, falling by 1.52% with VND 118.2 billion; VIX, decreasing by 1.65% with VND 113.3 billion; and FRT, dropping by 3.66% with a volume of VND 111.4 billion…
The VN30-Index ended the morning session with a slight loss of 0.1%, comprising 6 gainers and 19 losers. However, 10 stocks within this basket fell by more than 1%. This highlighted the resilience of VIC, VHM, and VRE, which collectively pushed the VN30-Index up by approximately 5.2 points and the VN-Index by around 4.2 points.
As expected, the mid-cap and small-cap groups couldn’t benefit from the support provided by the pillar stocks, and they fell in unison. The Midcap index was down by 0.69%, while the Smallcap index declined by 0.65%. Notable decliners that fell by over 2% included GEE, DC4, TLH, HPX, CSM, NTL, TDC, and MIG. Both indices plunged immediately after the market opened, with Smallcap experiencing a continuous downward trend. The liquidity of these two groups suffered a significant decline as the VN30 accounted for nearly 57% of the total trading value on the HoSE. In absolute terms, the HoSE witnessed a decrease in trading volume of VND 46.3 billion compared to the previous morning, while the VN30 posted an increase of VND 621.2 billion. This indicates that, aside from the blue chips, the remaining stocks are experiencing a drop in liquidity.
Among the gainers, very few stocks stood out apart from VIC, VHM, and VRE. On the HoSE, approximately 27 stocks recorded increases of over 1%, but the majority lacked significant trading volume. TLG rose by 2.2% with a volume of VND 11.5 billion; AAA climbed by 2% with VND 19.2 billion; and CSV gained 1.31% with a volume of VND 38.8 billion. These were the only notable exceptions, while stocks like PVP, ITC, NHH, APH, and HQC posted gains of over 1% but with trading volumes of only a few billion VND.
The VN-Index lost 4 points today and fell below the 1280-point threshold, marking the second consecutive session of declines. This is the most negative reaction observed within the old peak zone of 1300 points since the explosive session on August 16.
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