A transaction office of Vietcombank's Nha Trang branch. The bank's VCB shares led the decliners on Monday. — Photo courtesy of Vietcombank

 

The stock market began the week with a slight decline in the VN-Index, accompanied by reduced liquidity, as foreign investors extended their net selling streak by withdrawing over VNĐ1.4 trillion.

 

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,217.12 points, down by 1.45 points or 0.12 per cent.

 

Market breadth was slightly positive, with 161 stocks advancing, 149 declining, and 58 remaining unchanged. Liquidity dropped to VNĐ15.5 trillion (US$610.1 million), a decrease of 16.6 per cent compared to the previous session.

 

The VN30-Index, which tracks the 30 largest stocks by market capitalisation on HoSE, also slipped by 0.99 points, or 0.08 per cent, to 1,270.23 points. In the VN30 basket, 14 stocks fell, 12 advanced, and four remained unchanged.

 

The market decline was led by banking blue chips, with the Bank for Foreign Trade of Vietnam (VCB) falling by 0.76 per cent, taking more than 0.9 points from the VN-Index. Mobile World Investment Corporation (MWG) also dropped by 1.67 per cent, while the Bank for Investment and Development of Vietnam (BID) decreased by 0.56 per cent.

 

However, gains in select large-cap stocks partially offset the market's downturn. Vinhomes JSC (VHM) rose by 1.37 per cent, adding nearly 0.6 points to the VN-Index.

 

Analysts from Việt Dragon Securities remarked that the market continues to face resistance around the 1,210-point level, coinciding with the 20-day moving average (MA20) and showing signs of cooling down. Liquidity declined from the previous session, indicating temporary relief from selling pressure, although cautious sentiment remains as the market nears resistance levels.

 

"The current signs of cooling may exert downward pressure in the next session. However, the market is expected to find support around the 1,220-point level and may recover, as it was bolstered by the previous session's breakthrough above the 200-day moving average (MA200). The tug-of-war between supply and demand in the 1,210–1,230-point range will influence the market's next move. If sustained support emerges, the VN-Index has a chance to revisit the 1,230-point level," they noted.

 

Investors are advised to closely monitor the dynamics of fund flow in the coming sessions. “Currently, investors may consider making small, exploratory buys in stocks demonstrating strong inflows from support levels. However, it is also prudent to lock in short-term gains for stocks that have rapidly approached resistance zones,” analysts suggested.

 

On the Hanoi Stock Exchange (HNX), the HNX-Index edged up by 0.12 per cent to close at 221.79 points. The northern bourse recorded a trading volume exceeding 57.8 million shares, valued at over VNĐ956 billion.

 

Foreign investors maintained their net selling trend, with net outflows amounting to over VNĐ1.4 trillion on HoSE. — VNS

 

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