Widespread selling pressure caused the VN-Index to lose over 52 points.

On December 12th, the stock market experienced a rare sharp decline, the worst in weeks, with red dominating almost the entire board, dragging the VN-Index down sharply below the 1,650-point mark. A cautious sentiment prevailed from the beginning to the close of trading, reflecting investors' apprehension in the face of a series of unfavorable factors, from international developments to foreign capital withdrawals.

The financial and real estate sectors led the decline.

At the close of trading on December 12th, the VN-Index stood at 1,646.89 points, down 52.01 points, or 3.06%. This decline is seen by observers as a continuation of the correction that began in early December. On the Hanoi Stock Exchange, the HNX-Index also fell 2.26% to 250.09 points. The UPCoM-Index decreased by 1.3%. Total market liquidity reached over 27,400 billion VND, indicating continued capital flow, but largely driven by active selling.

The stock market fell sharply on December 12th, with red spreading across the electronic board. (Screenshot)

From the start of the trading session, the market chart leaned strongly towards the selling side. The index quickly fell from the 1,690-point level, and scattered recovery attempts throughout the day were insufficient to offset the strong profit-taking pressure in large-cap stocks. By the end of the session, red completely dominated with more than 600 stocks declining, many of them falling sharply by 5-7%.

Stocks in the financial and banking sector, which had played a supporting role in the index for many months prior, became the focus of this decline. VIX lost 6.84%, VPB fell 5.68%, TCB dropped 4.19%, CTG lost 4.25%, and VND declined by as much as 5.91%. The selling pressure was not only concentrated on the banking sector but also spread to securities, insurance, and financial services companies, causing this sector to contribute the largest decline to the VN-Index.

Real estate stocks continued their sharp decline, reflecting the prolonged weakness since the end of the third quarter. VHM lost 6.92%, CEO fell 8.68%, VRE dropped 6.95%, and DXG declined 6.94%. With the market lacking supportive information and capital flows being cautious, the real estate sector became more sensitive to volatility, especially after a series of unsustainable recoveries.

Not only finance and real estate, but most other sectors also declined. Consumer services fell by 6.52% - the sharpest drop of the day. Hardware and equipment, trade, energy, and industrial goods all recorded declines of 3-5%. Telecommunications and food and beverages saw smaller declines but also failed to maintain positive performance.

The number of rising stocks was very small and insufficient to provide significant psychological support. A few stocks like PNJ and BMP managed slight gains, but the thin trading volume meant their impact on the index was almost negligible.

One of the notable points of the session was the continued high level of net selling by foreign investors. Market data shows that foreign capital sold hundreds of billions of dong net on the HoSE, focusing on large-cap stocks such as VIC, VCB,ACB , and a number of other bank stocks. VIC alone saw net selling of nearly 183 billion dong, becoming the name with the most negative impact on foreign investors' trading portfolios.

The trend of capital withdrawal from the Vietnamese market has continued since the end of the third quarter, and the December 12th trading session further demonstrated that this pressure has not stopped. The continuous net selling by foreign investors has made many domestic investors more cautious, especially since blue-chip stocks, which are the core of the market, are being most strongly affected.

Conversely, some stocks like HPG, VRE, and SSI saw net buying, but the buying volume was relatively low compared to the selling volume and insufficient to create a balanced trend.

A cautious sentiment is growing amid international developments.

The sharp decline in the Vietnamese market occurred amidst significant volatility in global markets. US stocks and many Asian markets saw widespread declines the previous night, impacting investor sentiment domestically. The global economic landscape remains uncertain due to inflation, interest rates, and international trade, leading to a tendency for capital flows to contract and seek safer assets.

Stock prices are heavily impacted by foreign investor transactions. (Screenshot)

In Vietnam, many securities companies believe the market is entering a natural correction phase after the previous strong rally. The VN-Index losing the 1,700-point mark in the previous session is seen as a signal of a short-term weakening trend. Meanwhile, new capital inflows have not yet appeared strongly enough, leaving the market lacking support when facing selling pressure on December 12th.

Another factor that dampened investor expectations was the sharp decline on the first day of listing for some new stocks, particularly some in the financial sector after their IPOs. This development created a sense of higher risk, especially for those seeking opportunities in newly listed stocks.

Despite the sharp market decline, many experts believe this could be a necessary correction to rebalance supply and demand. The 1,630-1,650 point mark is considered a significant support zone, where demand may become clearer if sentiment stabilizes. However, foreign capital flows remain a concern. If net selling continues, domestic investors will find it difficult to create sustainable support on their own.

For short-term investors, using high leverage during periods of high market volatility can increase risk. Meanwhile, medium- to long-term investors tend to observe further to reassess the company's ability to recover as it enters a new business cycle.

The December 12th session closed with several negative signals, but also showed that the market is gradually returning to a more cautious state after a period of rapid growth. The developments in the coming sessions will depend on the ability of capital to flow back into blue-chip stocks, the stability of international markets, and the trading activity of foreign investors. If sentiment strengthens, the VN-Index may find a balance before establishing a clearer trend for the end of the month.

Source: https://baotintuc.vn/thi-truong-tien-te/ap-luc-ban-lan-rong-vnindex-mat-hon-52-diem-20251212151615415.htm