Stocks experienced their sharpest decline in five months.

Investors are monitoring the stock market on January 3rd.

After initially trading sideways at the reference level during the opening auction, the HoSE index remained in the red throughout the day. In the first half of the morning, liquidity remained low, similar to the previous session, preventing the stock market from falling too deeply. After 11 a.m., selling pressure intensified, pushing the index close to the 1,260 point mark.

The relentless sell orders throughout the afternoon made it difficult for the index to improve. After the ATC session, the VN-Index fell below 1,255 points, a decrease of more than 15 points compared to the previous session. This is the sharpest market correction in the past 5 months.

On the HoSE exchange, 353 stocks declined, five times more than the 69 stocks that increased in price. Among them, the insurance, securities, retail, and industrial sectors saw the sharpest declines in their sector indices.

However, due to their high proportion in market capitalization, bank stocks are among the most significant groups negatively impacting the VN-Index. TCB leads the way, followed by CTG, VPB, MBB,ACB , LPB, and HDB.

The market was also heavily impacted by the VN30 basket, with 24 stocks declining, causing the representative index to fall by nearly 23 points, the sharpest drop since the beginning of August. The red color also spread to the Hanoi and UPCoM markets.

During the sharp decline in the VN-Index, liquidity increased by nearly 3,000 billion VND to approximately 13,750 billion VND. However, this is still not a high figure, on par with the average of the past several months.

Foreign investors also intensified their selling trend for the third consecutive session. Today, foreign investors sold a net 734 billion VND, 7.6 times more than the previous session.FPT continued to be the focus, in addition to CTG.

Mr. Pham Hoang An, Head of Analysis at Thanh Cong Securities (TCSC), stated: "Today's market saw a sharp decline, concentrated in large-cap stocks. The main reason could be that foreign funds had already completed their NAV (net asset value) adjustments at the end of last year, and the market is now giving way."

Considering the current macroeconomic context, the continuously rising exchange rate has forced the State Bank of Vietnam to sell USD to stabilize the market. The estimated amount sold in December was nearly 3 billion USD. This foreign currency sale will narrow the money supply and increase the risk of rising interest rates in the future. According to experts, despite the unfavorable macroeconomic environment, the market is still expected to surge at the end of 2024, especially in banking stocks heavily held by investment funds (CTG, STB...).

In 2025, the momentum to maintain performance will diminish, slowing down buying activity. Combined with the recent rise of the DXY dollar strength index to 109, this increases the risk of further exchange rate increases in the future. This has led institutional investors to reduce their holdings, evidenced by the significant net selling by foreign investors in the last three trading sessions.

TH (according to VnExpress)

Source: https://baohaiduong.vn/chung-khoan-giam-manh-nhat-5-thang-402168.html