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After the four-day continuous increase shares price dropped, and liquidity declines

Shares ended the week on a negative note, putting a break on a four-day rally streak, as investors became timid when the VN-Index approached the resistance zone.

On the Ho Chi Minh Stock Exchange, the VN-Index edged down 0.11 percent to close Friday at 1,252.74 points. It had gained nearly 4 percent in the previous four sessions.

Source: Free Pics

Liquidity also declined with nearly 699 million shares worth VND15.6 trillion (US$672.4 million) being traded, down 3.5 percent in volume and 8.5 percent in value compared to the previous session and the lowest of the week.

“Given the rising streak over the past week, the demand became timid, meaning the VN-Index was unable to extend its gaining force and retreat to the reference level,” said Phuong Pham, a stock analyst at Viet Dragon Securities Co.

Blue chips' slump weighed on the market. Only eight of the top 30 shares by market value and liquidity gained value while 18 declined and four were flat.

Securities companies surprised the market when three of the top 10 stocks lifting the VN-Index came from this group – a rare occurrence as the market is usually led by the banking and real estate sectors.

Across the whole sector, only four brokerage companies lost value while 37 gained value. The biggest gainers included Saigon Securities Inc (SSI), up 5.3 percent; VNDirect Securities Co, up 3.8 percent; and Viet Capital Securities Co (VCI), up 4.2 percent.

On the dark side, heavyweight shares such as Vinhomes (VHM), Vingroup (VIC), Masan Group (MSN), Vietcombank (VCB), steelmaker Hoa Phat Group (HPG), Vinamilk (VNM), Vietjet (VJC), brewer Sabeco and lender BIDV (BID) were among the top market draggers.

“The gain in most stocks is showing signs of cooling down when the VN-Index is gradually approaching the strong resistance zone of 1,260-1,280 points. However, the correcting liquidity was relatively low compared to the recent gaining sessions, and selling pressure was not too strong,” Phuong said.

She reckoned that the market will likely continue to correct in the next sessions, however, the demand will regain and support the indices. The nearest support zone is 1,245 points for the VN-Index and 1,270 points for the VN30-Index.

Source: VNS

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