Việt Nam’s benchmark indices fell on Thursday, ending a two-day rally, as heavy afternoon selling dragged major sectors lower, despite a US Federal Reserve rate cut that was seen as a positive signal for markets.

 

The VN-Index on the Hochiminh Stock Exchange lost over 16 points, or 0.96 per cent, to close at 1,669.57 points.

 

Real estate, financial services and energy were the worst performers, down 1.7 per cent, 1 per cent and 1.2 per cent respectively.

 

Large-cap stocks also weighed on the market, with the VN30, tracking the top 30 shares by market value and liquidity, falling more than 1 per cent.

 

Shares in the Vingroup ecosystem extended losses – Vingroup (VIC) dropped 3.7 per cent and Vincom Retail (VRE) fell 3.8 per cent – though Vinhomes (VHM) edged up 0.2 per cent.

 

Regarding bank stocks, seven of the top 10 banks by market value lost ground, led by Fortune Vietnam Bank (LPB) down 3.5 per cent, VPBank (VPB) 2.2 per cent, and Techcombank (TCB), Military Bank (MBB) and Asia Commercial Bank (ACB) decreasing by more than 1 per cent.

 

In the energy sector, Bình Sơn Refinery (BSR) continued to weigh on the market with a loss of 3.5 per cent.

 

Market liquidity continued its downtrend, with total trading value on HOSE reaching nearly 797 million shares worth VNĐ23.8 trillion, down 11 per cent in volume and 8 per cent in value from Wednesday.

 

According to Viet Dragon Securities Co (TVS), the VN-Index is unlikely to break above the 1,700-point resistance level in the near term, noting that weak liquidity reflects continued investor caution.

 

They said the index is expected to fluctuate between 1,630 and 1,700 points in the coming sessions and advised investors to avoid chasing prices during sharp rallies and to maintain current stock allocations.

 

Bảo Việt Securities Co (BVSC) forecast the VN-Index may continue testing resistance around 1,700 points later this week, though recovery is likely to be uneven across sectors. Portfolio rebalancing by funds could also weigh on large-cap stocks.

 

BVSC analysts suggested focusing on fundamentally solid stocks that have corrected sharply in recent weeks, particularly in brokerage, banking, property, retail and industrial park sectors.

 

On the Hanoi Stock Exchange, the HNX-Index dropped 0.4 per cent to end at 266.96. Nearly 82 million shares worth VNĐ1.8 trillion changed hands, down 11 per cent in volume and little changed in value compared to the previous session.

 

Foreign investors remained net sellers, offloading nearly VNĐ2 trillion worth of shares on both exchanges. FPT was the only stock bought heavily by foreign investors, with net inflows of about VNĐ195 billion. — BIZHUB/VNS