Shares volatile on declining liquidity, dragged by real estate and banking sectors

October 05, 2023 - 17:33
The morning session's attempted recovery proved insufficient to work wonders for Thursday's market.
The Opal Boulevard project developed by Đất Xanh Group (DXG) in HCM City. DXG hit the floor price of a 7-per-cent drop yesterday. — Photo courtesy of

HÀ NỘI — The morning session's attempted recovery proved insufficient to work wonders for Thursday's market.

By the session's end, both major market indices experienced significant declines with the VN-Index dropping nearly 15 points, or 1.31 per cent, to close at nearly 1,114 points, while HNX-Index decreasing by 0.95 per cent to 228.01 points.

These indices both gained value of between 1 per cent and 1.6 per cent over the previous session.

On the Hồ Chí Minh Stock Exchange, sellers, particularly in the real estate sector, regained control in the afternoon session. Đất Xanh Group (DXG) and Development Investment Construction (DIG) hit the floor of a 7-per-cent decrease, CEO Group (CEO) approached a similar fate, and Novaland Investment Group (NVL) saw a nearly 5.5 per cent decrease.

Vingroup group’s shares also trended downward, with both Vingroup (VIC) and Vinhomes (VHM) registering drops.

The financial sector also struggled, with both banking and securities groups facing declines. Numerous banking codes exerted pressure on the market, with Vietcombank (VCB), BIDV (BID), Vietinbank (CTG) and Techcombank (TCB) ranking among the top 10 shares that dragged the VN-Index most.

By sector, nine of 25 stock groups tracked by registered an average loss of more than 1 per cent, of which the wholesale group was the frontrunner among the losers with an average decline of 3.4 per cent, followed by securities and financial services, both registering a decline of 2.6 per cent each.

Liquidity remained weak, with a total trading value on the two markets reaching just VNĐ14.5 trillion (US$602.6 million) for the entire session, down 36 per cent from Wednesday’s value.

Foreign investors were net sellers, offloading nearly VNĐ749 billion ($31.2 million) worth of shares. Codes that faced significant sell-offs included PV Power (POW), CTG, Hồ Chí Minh Development Bank (HDB), Saigon Securities Inc (SSI) and VIC.

Đỗ Minh Trang, head of Analysis at ACBS Securities JSC, has anticipated that the threshold of 1,100 - 1,120 point range for the VN-Index will play a crucial role as a significant support zone in October. This range is seen as pivotal, serving as confirmation for the upcoming direction of the VN-Index.

“Should the VN-Index respond positively and sustain fluctuations at or above this support zone, a robust recovery phase is expected to commence, potentially pushing the VN-Index back to the 1,200 point mark and beyond, even reaching the 1,250-point threshold,” Trang said in a note.

However, she also cautioned if unfavourable macroeconomic factors or third-quarter business results of companies lead to the VN-Index breaking the support level of 1,100 points, the likelihood of a continued decline in the VN-Index is high. This could result in the VN-Index descending to the 1,080-point threshold or even further down to 1,020 points. — VNS