The VN-Index's performance in the last five day. The index hit the lowest level since the beginning of the week on Thursday. — Source: vietstock.vn

HÀ NỘI — The stock market suffered a broad-based sell-off on Thursday as selling pressure intensified sharply in the afternoon, sending the VN-Index down more than 27 points and wiping out much of the previous session's rebound.

The VN-Index on the Hochiminh Stock Exchange (HoSE), closed down 27.55 points, or 1.54 per cent, at around 1,765 points, its lowest level since the beginning of the week.

The market had traded relatively steadily in the morning, with several banking and oil and gas stocks posting gains. However, sentiment deteriorated later in the session, as selling spread across large-cap stocks and major sectors including real estate, securities and steel.

Market breadth was negative, with 227 stocks declining, compared with only 85 gainers. Trading activity on the southern bourse picked up as selling intensified. More than 750 million shares were traded, worth more than VNĐ18.6 trillion (US$715.6 million). 

Pressure was particularly pronounced among blue chips.

The VN30 basket recorded 24 decliners, with only Masan Consumer Corporation (MCH), Techcombank (TCB), Masan Group (MSN) and Vietnam Rubber Group (GVR) managing to close higher. Several large-cap stocks fell between 2 and 4 per cent.

Vingroup-related shares, which had provided significant support to the benchmark in the previous session, reversed sharply. Vinhomes (VHM), Vincom Retail (VRE) and Vingroup (VIC) were the three worst-performing stocks in the VN30 basket, falling between 2.7 and 3.5 per cent.

Stocks across real estate, banking, securities, oil and gas and consumer-related sectors came under pressure, leaving the market's weakness broadly distributed rather than concentrated in a small number of heavyweight stocks.

On the Hanoi Stock Exchange (HNX), the HNX-Index more than 5 points, or 1.77 per cent, to 283.34 points. Investors poured over VNĐ1 trillion into the northern bourse, equal to a trading volume of 58 million shares. 

Foreign investors added to selling pressure, posting a net sell value of more than VNĐ570 billion on the HoSE. 

Despite falling to its lowest level since the beginning of the week, the VN-Index remained around 30 points above its end-July level.

In a recent market outlook, SSI Research said several factors, including August seasonality, easing margin-related selling pressure and improving foreign capital flows, could support short-term trading opportunities.

Historical data compiled by SSI show that August has been one of the more favourable months for Việt Nam's stock market, with the market recording gains in eight of the past 10 years.

In those positive years, the average return during August was approximately 5 per cent. Even in the two years when the market declined, 2017 and 2019's losses were relatively modest at less than 1 per cent, according to SSI. — BIZHUB/VNS