A VPBank office in Hà Nội.The lender's VPB shares declined on Thursday, contributing to the VN-Index retreating below the 1,330-point mark. — Photo courtesy of VPBank

HÀ NỘI — The stock market declined on Thursday, ending a streak of five positive sessions for the VN-Index. Liquidity increased, while foreign investors began buying, although in small volumes.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index lost 8.14 points, or 0.61 per cent, to close at 1,326.27 points.

Market breadth was overwhelmingly negative, with 250 decliners and just 69 gainers. Trading liquidity surged to VNĐ24.5 trillion (approximately US$961.3 million), marking an 11.8 per cent increase from the previous session.

Meanwhile, the VN30-Index, which tracks the 30 largest stocks by market capitalisation, also declined, losing 5.09 points, or 0.37 per cent, to settle at 1,387.3 points. Within the VN30 basket, 19 stocks fell, nine advanced and two remained unchanged.

The market’s downturn was primarily driven by losses in blue-chip banking stocks. The Bank for Foreign Trade of Vietnam (VCB) posted the sharpest drop, slipping 1.8 per cent, erasing nearly 1.7 points from the VN-Index. The Bank for Investment and Development of Vietnam (BID) also declined, losing 1.71 per cent, while Vietnam Technological and Commercial Joint Stock Bank (TCB) fell 1.97 per cent.

Despite the overall market weakness, VinGroup-related stocks helped limit the decline.

Vingroup Joint Stock Company (VIC) led the market, hitting the daily limit-up of 6.86 per cent, contributing nearly 3.4 points to the VN-Index. Vinhomes JSC (VHM) gained 1.81 per cent, while Masan Group Corporation (MSN) advanced 2.47 per cent, and Vincom Retail Joint Stock Company (VRE) increased 2.73 per cent.

According to analysts at the Saigon - Hanoi Securities (SHS): “The VN-Index remains in an upward short-term trend, with 1,320 points acting as the nearest support level, and 1,300 points as a stronger support zone.

"The VN30-Index is heading toward the 1,400 – 1,420-point resistance range, which corresponds to the market's highest levels from May 2022. Short-term selling pressure is increasing following the recent rally, yet liquidity remains healthy, indicating that demand at lower price levels remains strong.

"In the short term, the current market level is not particularly attractive for increasing investment allocations across many stocks. However, sector rotation remains active, presenting short-term opportunities in various industries as the VN-Index maintains its position above 1,300 points.

"Therefore, investors are actively searching for short-term investments and trading opportunities, but should be selective in increasing exposure. Focus should be on high-quality stocks, with strict risk management. If the portfolio size is too large, or if it includes underperforming stocks, investors should consider reducing exposure and restructuring weaker positions."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also edged down 0.23 per cent, closing at 241.31 points. Trading value on the northern bourse reached VNĐ1.1 trillion, with more than 62 million shares changing hands.

Foreign investors began buying again, although in small volumes, accumulating VNĐ152 billion worth of shares on the HoSE. — VNS