Market breadth was negative with the number of losers outnumbering the gainers.
|Facilities of steel maker Hoà Phát Group (HPG). HPG lost 0.9 per cent yesterday. Photo HPG
HÀ NỘI — The stock market experienced its third consecutive session of decline on Friday, primarily attributed to the slump in large-cap stocks.
On the Hồ Chí Minh Stock Exchange, the VN-Index inched down 0.71 per cent to close at 1,102.30 points, widening the three-day loss to more than 2 per cent.
Market breadth was negative with the number of losers outnumbering the gainers by 338-162 and 87 closed flat.
Liquidity decreased slightly, with nearly 750 million shares worth VNĐ15.9 trillion (US$512 million) traded on the southern bourse.
According to vietstock.vn, the downward trend in share prices was evident as investors showed concerns and opted to sell off their holdings in prominent companies. The negative sentiment surrounding these large-cap stocks weighed heavily on the overall market performance. As a result, the market experienced a dip as investors reacted to the ongoing downward trajectory of these influential stocks.
The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, lost 0.64 per cent to reach 1,097.40 points. In the basket, five stocks climbed, 20 slid and five stayed flat.
The downward trend in the session was worsened by billion-dollar stocks such as Vingroup (VIC), steelmaker Hòa Phát Group (HPG), brewer Sabeco (SAB), dairy giant Vinamilk (VNM), BIDV (BID) and Vietcombank (VCB).
The banking group also suffered from selling force, with losers being Vietinbank (CTG), Vietnam Prosperity Bank (VPB), and Vietnam International Bank (VIB).
According to analysts at Việt Dragon Securities Co (VDSC), after the reversal signal of the previous session, the market remained cautious despite the rally at the beginning of the session.
“In general, however, the development is slowing down and the selling pressure is temporarily cooling down, which is reflected in the reduced liquidity and the VN index, which still remains above the 1,110 threshold,” they said in a daily report.
“It is possible that the market will make a small technical recovery to retest the supply. However, the recent reversal signal has created short-term risks for the market, and the possibility of breaching the 1,130 threshold has decreased significantly and may weaken.”
“Therefore, investors need to slow down and monitor supply and demand in the near future to reassess the market’s condition. For now, take advantage of the rally to take short term profits or structure your portfolio to minimise risk.”
On the Hà Nội Stock Exchange, the HNX-Index also declined 0.09 per cent to end at 227.02 points.
Some 76.5 million shares worth VNĐ1.5 trillion were traded on the northern exchange.