Vincom Mega Mall in Vinhomes Ocean Park in Hà Nội. Vinhomes led the blue-chip gainers on Thursday, closing up 2.9 per cent. — Photo vinhomecitys.com

HÀ NỘI — A significant downturn in the afternoon caused both major stock indices to drop on Thursday, with blue-chip stocks experiencing substantial declines and recovery efforts falling short.

Both stock indices were hit by a strong sell-off, sharply contracting market breadth, with stocks falling over 1 per cent more than doubling to 380, while only 180 rose.

A total of 712.5 million shares worth VNĐ17.6 trillion (US$693 million) were traded in the two markets.

Despite some support from major stocks, the VN-Index fell for a second day, losing nearly 0.6 points to close at 1,268.21 points.

In the afternoon session, key bluechips that had performed well in the morning – such as Vinhomes (VHM), Vingroup (VIC), Vinamilk (VNM) and lender BIDV (BID) – also faced declines.

VHM, despite strong buying support, fell by 0.5 per cent from its morning close but ended the day up 2.9 per cent. VIC saw a decline of 0.7 per cent but closed with a 2.4 per cent gain. VNM, the only stock in the VN30 basket that remained positive, returned around 0.8 per cent to the market, closing slightly up by 0.54 per cent. BID faced the most pressure, falling 0.51 per cent from its reference price, marking a 1.52 per cent drop from the morning session.

The most notable sell-off of the afternoon was seen in FPT, which recorded the highest liquidity at VNĐ608 billion ($24 million). FPT closed down 1.8 per cent.

Other stocks with significant afternoon volatility included Military Bank (MBB), Vietnam Rubber Group (GVR) and Petrolimex (PLX), each down around 2 per cent.

On the Hà Nội Stock Exchange, the HNX-Index slumped for a seventh consecutive session, falling 0.5 per cent to end the day at 234.96 points. The northern bourse’s index has lost more than 2 per cent since August 23.

According to analysts at the Vietcombank Securities Co, the market fluctuations can be linked to investor sentiment influenced by major global stock indices. However, the subdued buying activity indicates a cautious approach among investors.

“We advise investors to hold their current stock positions and wait for clear signs of market recovery before considering any additional investments in their existing target stocks,” they wrote in a note.

Foreign investors also reduced their selling activity in the afternoon, with net sales amounting to VNĐ145.3 billion, compared to VNĐ538.7 billion in the morning. The biggest sell off of stocks included FPT (VNĐ272 billion), steelmaker Hòa Phát Group (HPG, VNĐ92 billion), Vietnam Prosperity Bank (VPB, VNĐ89 billion), and Hoa Sen Group (HSG, VNĐ74 billion). — VNS