Market corrects as selling force weighs on blue-chips stocks

Foreign investors were still net buyers on the southern exchange.

A store of PNJ in Cầu Giấy District, Hà Nội. The company's shares climbed nearly 2.4 per cent on Tuesday, cushioning the market's downtrend. — Photo courtesy of PNJ

HÀ NỘI — The market reversed its recent course to finish lower on Tuesday, weighed by losses in blue-chip stocks, especially the three big lenders: Vietcombank (VCB), BIDV (BID) and Vietinbank (CTG).

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) declined by 5.36 points, or 0.45 per cent, to close the session at 1,177.5 points. The correction ended the index's three-day rally.

On the southern bourse, the breadth was negative as the number of decliners surpassed that of gainers by 194 to 120. Liquidity fell from the previous session to VNĐ15.1 trillion (US$615.1 million). This was equal to a trading volume of more than 683.7 million shares.

The VN30-Index, which tracks the 30 biggest stocks on HoSE, also inched lower to 1,183.85 points, a decrease of 5.71 points, or 0.48 per cent. Up to 25 ticker symbols tumbled while five edged up.

In the short term, the market will remain positive. However, the VN-Index would soon approach the psychological barrier of 1,200 points, so short-term investors should avoid chasing the rallies with buying shares in the coming sessions, said Saigon - Hanoi Securities JSC (SHS).

On the Hà Nội Stock Exchange (HoSE), the HNX-Index closed Tuesday at 229.26 points, down 0.51 points, or 0.22 per cent.

During the session, investors poured over VNĐ1.3 trillion, equivalent to a trading volume of 68.7 million shares.

Leading the down trend was the property developer, Vinhomes (VHM) with a fall of 1.51 per cent. It was followed by the three largest commercial banks: Vietcombank (VCB), BIDV (BID) and Vietinbank (CTG).

Their stocks were down 0.54 per cent, 0.8 per cent and 1.38 per cent, respectively. The losses caused the market's benchmark index to ease by 3.3 points.

Others contributing to the bearish sentiment were Vinamilk (VNM), Mobile World Investment Corporation (MWG), AFP Corporation (FPT) and Asia Commercial Joint Stock Bank (ACB).

The market pared losses on gains of some large-cap stocks led by Techcombank (TCB) with an increase of 1.43 per cent. Becamex (BCM), Phú Nhuận Jewelry JSC (PNJ) and Hoàng Anh Gia Lai JSC (HAG) also performed well, cushioning the downward risk.

Also supporting the market, foreign investors were still net buyers on the southern exchange with a value of VNĐ234.41 billion.