Many stocks hit their upper limit, so why did the VN-Index still fall by more than 22 points?

The first trading session of February continued to be an extremely challenging day psychologically. Selling pressure on Vingroup stocks (VIC, VHM, VRE), combined with intense net selling by foreign investors, caused the VN-Index to briefly fall below 1,780 points. However, bargain hunting in the oil and gas and banking sectors helped the market make a spectacular recovery towards the end of the session.

Opening the trading session on February 2nd, negative pressure from previous sessions continued, causing the market to be shrouded in red. Selling pressure intensified in the early afternoon, pushing the index to its lowest point of the day, but significant capital inflows began at deep support levels.

At the close of trading, the VN-Index fell 22.54 points (equivalent to 1.23%), closing at 1,806.50 points.

Despite still recording a significant decline, compared to the low of 1,777 points set at 1 PM, the index has recovered nearly 30 points, showing a considerable effort by investors to "patch the bottom".

Why did the VN-Index fall by more than 22 points despite many stocks hitting the ceiling price? - Image 1.

The market showed significant divergence during the trading session on February 2nd.

The focus of today's market downturn continued to be on the Vingroup group of stocks. All three large-cap stocks, VIC (Vingroup), VHM (Vinhomes), and VRE (Vincom Retail), were heavily sold off, closing at the floor price, down 7%, with no remaining buy orders. The simultaneous drop in these three pillars exerted tremendous pressure on the overall index and investor sentiment.

Furthermore, the actions of foreign investors exacerbated the situation. Foreign investors had a massive sell-off, net selling 2,461.46 billion VND on the HoSE exchange. The total value of sales reached over 5,700 billion VND, heavily concentrated on blue-chip stocks, creating significant pressure on the entire market.

Amidst that gloomy picture, the oil and gas sector unexpectedly emerged as the "hero," carrying the index forward. Strong speculative capital inflows into this group helped PVD surge to its ceiling price of 6.9%, BSR up 6.7%, PVS up 5.9%, and the giant PLX up 3.4%. The strong purple and green hues of the energy sector spread confidence, preventing a widespread sell-off.

The banking sector also contributed positively to the late-session recovery with clear divergence. While TCB and VPB were in the red, major state-owned banks like BID (+2%), CTG (+1.5%), and VCB (+1.4%) made efforts to regain green, acting as the driving force pulling the index out of the bottom.

Active bargain-hunting helped maintain relatively good market liquidity. The total trading value on the HoSE reached VND 31,811.19 billion, with over 970 million shares changing hands.

In terms of market breadth, sellers still held the advantage but were no longer completely dominant as at the beginning of the session. The HoSE exchange recorded strong divergence with 210 declining stocks compared to 128 rising stocks.

According to observers, the "retreat" towards the end of the February 2nd trading session is a positive technical signal, indicating that demand at the 1,780-point level is real. However, with the Vingroup group yet to find equilibrium and foreign investors continuing to sell heavily, the market is expected to face further significant fluctuations in the coming sessions before establishing a new trend.

Source: https://nld.com.vn/nhieu-co-phieu-tang-tran-sao-vn-index-van-giam-hon-22-diem-196260202151639315.htm