Caution prevailed among investors today, with reduced trading activity causing a 17% drop in liquidity on the two exchanges compared to yesterday morning, as stocks plunged into the red. The large-cap group of the VN-Index could only manage to keep two stocks in positive territory, which was not enough to buoy the index.
The VN-Index managed to stay in the green for only the first 45 minutes of the morning session, with the highest point reached at the market open. The index then trended downwards for almost the entire remaining session, closing 3.11 points lower, or a loss of 0.23%. The market breadth was extremely negative, with 88 advancing stocks versus 188 declining ones.
The highlight of the morning session was the liquidity, or lack thereof. After the record-breaking session on June 24th, which saw strong trading activity, the following two sessions failed to attract buying momentum. Instead, liquidity has been on a downward trend. The total matched value on the HoSE exchange this morning was just over VND 6,619 billion, an 18% decrease from yesterday morning and the lowest in 11 sessions. It appears that the market reacted negatively to the index’s peak.
One of the reasons for investor caution is that the VN-Index’s peak was largely due to a handful of large-cap stocks, with VIC and VHM playing the most significant roles. These two stocks are currently struggling at the old peak levels. VIC rose as much as 1.25% but has since fallen back to the reference price. VHM, on the other hand, traded lower throughout the morning session and is currently down 1.03%.
The remaining large-cap stocks were not strong enough to offset the decline in these two pillars. VCB struggled to maintain its reference price, while BID, CTG, and FPT all posted significant losses. BID reversed course by approximately 0.83% from its intraday high and ended the session down 0.56%. CTG fell by 1.08%, closing 0.72% lower, while FPT reversed its gains of 1.35% to close 0.34% lower.
Among the ten largest stocks by market capitalization on the HoSE exchange, only TCB and GAS managed to stay in positive territory, with TCB up 0.44% and GAS up 1.19%. TCB is also facing significant pressure, as its price rose to its intraday high just a few minutes after the market open, surging up to 1.92% at one point. GAS benefited from a rebound in oil prices, but this was an isolated case, as most other oil and gas stocks continued to decline sharply. Out of the VN30 basket, there are currently seven gainers. In addition to GAS, HPG rose 1.1%, and MSN gained 1%. These two stocks have undergone significant corrections and are not among the largest by market capitalization. On the other side, 18 stocks in the VN30 basket are in negative territory, with VHM being the only large-cap stock among the decliners. STB fell by 1.07%, and GVR declined by 1.14%, but their impact on the index was limited. The rest of the basket mostly underwent narrow fluctuations, with a downward trend being the dominant theme for the morning session. The VN30-Index also closed the morning session lower, down 0.15%.
With such a narrow market breadth, stocks outside the blue-chip group also struggled. Out of the 77 gainers, only 15 stocks rose more than 1% with liquidity above VND 10 billion. The weak buying power meant that stocks were largely at the mercy of sellers. HPG, MSN, and KBC were the only three stocks with superior buying pressure, each recording liquidity above VND 100 billion. Stocks like SZC, SCS, FRT, VHC, HVN, LDG, SIP, REE managed to attract a few dozen billion dong in liquidity.
The positive note is that selling pressure has not been overwhelming. While the number of declining stocks far outweighs the advancers, the decline in stock prices has been relatively mild. Out of the approximately 50 stocks in the VN-Index that are down more than 1%, only 18 stocks have liquidity above VND 10 billion. This indicates that the market’s weakness is primarily due to lackluster buying rather than aggressive selling. This trend was also evident in yesterday’s session.
Foreign investors are showing notable signs of increased selling. While their buying value was similar to yesterday’s morning session, their selling value surged by 36% on the HoSE exchange. The net selling value reached VND 558.4 billion, and the total net selling value across the three exchanges exceeded VND 600 billion. In reality, the scale of foreign selling is not particularly unusual, but because the buying side is so weak, the net position has turned negative. This indicates a general lack of investment appetite across the market, not just among domestic investors.
Notable stocks that were net sold include FPT (-VND 127.9 billion), HPG (-VND 80.9 billion), GEX (-VND 41.7 billion), VNM (-VND 34.7 billion), and MWG (-VND 31.5 billion). On the net buying side, KBC (+VND 29.3 billion), DGW (+VND 28.6 billion), and SSI (+VND 25.6 billion) stood out.
The slowdown in liquidity and the negative market breadth, coupled with mild price declines, reflect the prevailing cautious sentiment. Sellers are not “running for the exits,” but buyers are becoming more hesitant. The market is currently in a holding pattern, awaiting the final decision on the countervailing tax rate to “rearrange” their portfolios accordingly.
The Tapping Into a Profound Cash Flow Crisis: “Liquidity Dips to an 11-Session Low as Foreign Investors Sell-Off Over $600 Billion.”
The cautious sentiment continues to pervade the market, with reduced trading activity and a 17% drop in liquidity on the two exchanges this morning compared to yesterday. The large-cap group of the VN-Index is struggling, with only two stocks in the green, unable to buoy the index as it sinks into the red.
Market Pulse for June 26th: Adjusting, VN-Index Dips Below Reference
The market opened with a slight uptick, but soon took a swift downturn, dipping below the reference mark. As of 10:20 am, the VN-Index shed 1.67 points to 1,365.08, the HNX-Index fell 0.48 points to 227.18, and the UPCoM-Index dropped 0.12 points to 99.82.
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Nvidia stock was the pillar of strength for the indices in this session, surging 4.3% to a record high of $154.31 per share.
A Blue-Chip Stock Sees Massive Foreign Sell-Off of Nearly VND 900 Billion in ETF Restructuring
Foreign investor group continued their net selling streak, offloading more than VND 572 billion in today’s trading session.
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