A transaction office of Fortune Vietnam Joint Stock Commercial Bank. The bank's LPB shares rose on Monday, contributing to a positive start for the VN-Index in December. — Photo courtesy of LPBank

HÀ NỘI — The stock market began December 2024 with a modest rise, despite facing significant selling pressure during the afternoon session.

The VN-Index managed to close in positive territory, though liquidity remained subdued. Meanwhile, foreign investors reversed their trend, turning net sellers after six consecutive sessions of net buying.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) edged up by 0.75 points, or 0.06 per cent, to close the session at 1,251.21 points.

Market breadth was negative, with 162 stocks declining and 135 advancing. Liquidity on the southern bourse dropped slightly to VNĐ11.9 trillion (approximately US$468.9 million), down 11.8 per cent from the previous session, with a trading volume of 497 million shares.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation on HoSE, fell by 2.43 points, or 0.19 per cent, to 1,308.83 points. Within the VN30 basket, nine stocks advanced, 17 declined and four remained flat.

The banking sector led the market’s gains. According to data from financial platform vietstock.vn, the Bank for Foreign Trade of Vietnam (VCB) was the top contributor to the VN-Index's growth, with its shares rising by 0.96 per cent and adding over 1.2 points to the index.

Other notable gainers included the Fortune Vietnam Joint Stock Commercial Bank (LPB), which rose by 3.1 per cent, Bao Viet Holdings (BVH) with a 3.16 per cent gain and Hoa Phat Group JSC (HPG), up by 0.56 per cent.

However, some large-cap stocks faced selling pressure, limiting the market’s gains. FPT Corporation (FPT) fell by 0.77 per cent, the Bank for Investment and Development of Vietnam (BID) dropped by 0.53 per cent, and PetroVietnam Gas Joint Stock Corporation (GAS) declined by 0.57 per cent.

Stock analysts from Viet Dragon Securities noted: “The market paused around the 1,250-point level and quickly cooled down. Liquidity declined slightly compared to the previous session and remained relatively low, indicating cautious sentiment among investors despite the market's gains.

“While the market closed in the green, the cautious candlestick pattern suggests resistance and a potential risk of correction after the recent extended rally. The market may retreat to test support levels around the 20-day moving average at 1,238 points or lower. If supply increases and outweighs demand during this testing phase, the risk of a further downturn may persist.

“Thus, investors should proceed cautiously and monitor supply-demand dynamics to reassess market conditions. Portfolio management remains crucial, and short-term profit-taking or portfolio adjustments to minimise risks can be considered.”

On the Hà Nội Stock Exchange (HNX), the HNX-Index rose slightly by 0.3 per cent to close at 225.32 points on the first Monday of December. Over VNĐ685 billion worth of shares, equivalent to a trading volume of more than 38 million shares, were traded on the northern exchange.

Foreign investors returned to net selling after six consecutive sessions of net buying, with net sales of over VNĐ304 billion on the HoSE. — VNS