Stock market slumps following two days of gains

A customer makes a transaction at a branch of SSI Securities Co (SSI). SSI lost 0.9 per cent yesterday. — Photo SSI

HÀ NỘI — The stock market took a downward turn following two consecutive days of gains as banking shares experienced a slump and securities stocks faced a significant drop.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index dropped 0.79 per cent to close at 1,094.13 points.

Market breadth was negative with 362 decliners and 138 gainers.

Some 723.5 million shares were traded on the southern exchange, worth VNĐ14.7 trillion (US$605.6 million).

The VN30-Index, which tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE, lost 1.05 per cent to reach 1,081.70 points. In the basket, four stocks climbed, one stayed flat and 25 slid.

The market indices were under pressure due to a substantial selling force in the market. Banking stocks lost ground with most of the stocks in the basket declining, including Asia Commercial Bank (ACB), National Commercial Joint Stock Bank (NVB), Vietcombank (VCB), Military Bank (MBB), Bank for Investment and Development of Vietnam (BID), Sacombank (STB), Vietinbank (CTG), VPBank (VPB), and Techcombank (TCB).

Tiên Phong Bank (TPB) was the only gainer in the banking group.

The securities group was also hit strongly with two giants SSI Securities Inc (SSI) and VNDirect Securities Co (VND) dropping 0.9 per cent and 0.5 per cent, respectively.

Liquidity decreased compared to the previous session, showing that cash flow is still cautious but temporary supply has not yet caused much pressure. It is expected that the market will have an exploration of supply and demand in the area of 1,100 – 1,108 points in the next trading session, said Việt Dragon Securities Co.

“Temporarily, we still need to consider the possibility that supply will increase again and put pressure on the market. Therefore, investors should slow down and avoid overbought conditions, while observing cash flow efforts at the resistance zone. Currently, we should still take advantage of the recovery period to structure our portfolio in a way that minimises risks,” it said.

The HNX-Index on the Hà Nội Stock Exchange (HNX) declined 0.39 per cent to close at 226.15 points.

Nearly 98 million shares were traded on the northern exchange, worth VNĐ2 trillion. — VNS