Hòa Phát Group's steel products at a factory in Hưng Yên Province. The steel producer's HPG shares led the market's decliners, contributing to the VN-Index falling below the 1,265-point mark. — Photo courtesy of Hòa Phát

HÀ NỘI — The stock market experienced a sharp decline on Monday, with the VN-Index falling below the 1,265-point threshold. Liquidity improved significantly, but foreign investors extended their net selling streak for the sixth consecutive session.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,263.26 points, dropping 11.94 points, or 0.94 per cent.

Market breadth was overwhelmingly negative, with 240 decliners far outnumbering just 78 gainers. Trading value on the southern bourse surged to VNĐ18.8 trillion (US$739.9 million), up 27.9 per cent from the previous session.

The VN30-Index, which tracks the top 30 largest-cap stocks on HoSE, also suffered a steep decline, losing 9.92 points, or 0.74 per cent, to close at 1,330.88 points. Within the VN30 basket, 16 stocks fell, nine advanced and five remained unchanged.

Leading the market’s downturn was Hòa Phát Group Joint Stock Company (HPG), which plunged 4.69 per cent, wiping out more than 1.8 points from the VN-Index. The sharp decline followed news that US President Donald Trump announced plans to impose a 25 per cent tariff on all steel and aluminium imports into the United States. Given that Việt Nam is one of the major steel suppliers to the US, this measure could have significant repercussions.

Other major stocks also weighed heavily on the market. FPT Corporation (FPT) lost 2.81 per cent, the Bank for Foreign Trade of Vietnam (VCB) declined by 0.86 per cent, and Vinhomes JSC (VHM) dropped 2.45 per cent.

Further declines were recorded in Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG), which fell 1.23 per cent, and Vingroup Joint Stock Company (VIC), which slid 1.6 per cent.

Despite the overall market weakness, some large-cap stocks provided mild support. Sài Gòn Thương Tín Commercial Joint Stock Bank (STB) gained 2.67 per cent, contributing over 0.46 points to the VN-Index.

Analysts at the Sài Gòn-Hà Nội Securities (SHS) commented: “The VN-Index is currently under pressure to retest its 20-day moving average and the key psychological support level around 1,260 points. However, the index will only regain a positive short-term trend if it successfully breaks above major resistance levels, including the 200-day moving average, which aligns with the 1,260-point zone. In the medium term, the VN-Index is expected to continue consolidating within the 1,200-1,300 point range, with equilibrium around 1,260 points.”

“In the short term, the market is facing headwinds from global trends, as technology and telecommunications stocks are under correction pressure, seeing a surge in selling volume after a strong rally. Stocks that outperformed the market in 2024 are also experiencing profit-taking.”

"Investors should reassess and rebalance their portfolios in the current environment. The market remains relatively selective, and several stocks are trading at attractive valuations relative to their fundamentals and long-term growth potential, making them suitable for accumulation."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also lost 0.66 per cent, closing at 227.97 points. Trading value on the northern bourse exceeded VNĐ964 billion, with over 62 million shares changing hands.

Foreign investors extended their net selling streak to six consecutive sessions, offloading over VNĐ442 billion worth of shares on HoSE. — VNS