VN-Index loses 28 points, money flows out of blue-chip stocks and into small-cap stocks.

After a series of consecutive gains and approaching previous peaks, the Vietnamese stock market entered a sharp correction phase as profit-taking sentiment increased. The December 10th session recorded the deepest decline in a month, making Vietnam the worst-performing market in Asia that day.

Blue-chip stocks are showing strong divergence, with capital flowing away from large-cap stocks and into mid-cap and small-cap stocks.

At the close of trading, the VN-Index lost 28.19 points, or 1.61%, falling to 1,718.98 points. The HNX-Index decreased by 0.26% to 256.48 points, while the UPCoM-Index dropped 0.48% to 119.11 points. Total market liquidity reached approximately 19,533 billion VND, the lowest level in three weeks, reflecting the clear caution of investors in the face of strong market volatility.

The negative focus of the session came from VIC shares, which were heavily sold and fell by the maximum allowed limit of 7%, wiping out nearly 11 points from the VN-Index in a single session. The overwhelming selling pressure on VIC was evident throughout, causing its market capitalization to evaporate by tens of trillions of dong.

Not only VIC, but the entire Vingroup group plummeted: VRE fell 6.25%, VHM fell 3.72%, while VPL dropped nearly 7%. These four stocks alone – VIC, VHM, VRE, and VPL – dragged down the VN-Index by 27 points, completely reversing their role as the "locomotive" that had helped the index approach its previous peak in earlier weeks.

The weakness spread to the real estate sector as red dominated: KDH fell 2.4%, PDR fell 2.06%, CEO and DIG both lost 2.02%, HDG fell 1.95%, and LIC fell 4.1%. A few bright spots, such as VPI rising more than 2%, were not enough to balance the overall gloomy picture.

While the real estate sector and other key stocks weakened, some banking and securities stocks maintained positive gains thanks to short-term capital inflows: HDB rose 2.06%, MBB rose 1.82%, SSI rose 1.74%, VNM rose 0.96%, and CTG and VPB both maintained slight increases.

However, the rest of the financial sector faced selling pressure, withSHB , EIB, and TCB falling around 0.3%; VIX down 2.13%, and MBS down 0.35%. This indicates that large capital flows are still observing from the sidelines, while speculative capital is shifting to smaller stocks less affected by the overall market.

The industrial and aviation-logistics sectors continued to perform negatively: GEX fell 3.26%, CII dropped nearly 4%, GEE declined 6.8%, VJC lost 1.7%, and VSC decreased 1.62%. Conversely, the energy sector showed signs of recovery with POW rising 2.5% and PVD increasing 0.82%.

The consumer and technology sectors also experienced corrections, with MWG falling 1.19%, SAB down 3.38%, andFPT down 1.34%. TTF unexpectedly surged 6.74%, becoming a rare bright spot.

Foreign investors continued their net selling spree on the HoSE, offloading shares worth 367.7 billion VND, extending their capital withdrawal streak over the past few weeks. VIC remained the main target of selling pressure, with net selling reaching 307.9 billion VND. Many other blue-chip stocks also faced similar pressure: STB saw selling of 159.8 billion VND, VCB 86.5 billion VND, VHM 73.77 billion VND, and MSN nearly 64 billion VND.

On the buying side, foreign capital continued to show interest in the banking and steel sectors: MBB was net bought for VND 241 billion, HPG for VND 152 billion, VNM for VND 64.9 billion, and GVR and POW were both net bought.

Nevertheless, overall foreign investor activity remains a major drawback amidst weakening market liquidity.

Despite the sharp decline, this correction is considered localized, mainly concentrated in stocks that had risen sharply such as Vingroup, VJC, SAB… The number of rising and falling stocks in the large-cap group was fairly balanced (14 rising - 12 falling), indicating that the pressure did not spread across the entire market.

Many blue-chip stocks are still trading at attractive prices after the previous correction, so bargain-hunting buying may soon appear if there is no new unfavorable news.

SSI Research also offers a more positive outlook based on data from the past three years, noting that the market typically performs well from December to March, with a 75% probability of price increases and superior average returns.

Liquidity is expected to improve with the listing of VPX and VCK in December, freeing up capital. Additionally, overnight interest rates tend to fall towards the end of the year, providing positive support for the market.

From a macroeconomic and valuation perspective, SSI Research raises its VN-Index target for 2026 to 1,920 points, based on:

- The projected P/E ratio for 2025 is 14.5 times, similar to the region.

- Profit growth in 2026 is projected at 14.5%, significantly higher than many Asian markets.

- The VN-Index's PEG ratio of just 0.96 is more attractive than the regional average of 1.44.

Vietnam aims for double-digit GDP growth between 2026 and 2030, driven by accelerated structural reforms, FDI inflows, and infrastructure investment. Sectors poised to benefit include banking, construction materials, energy and petroleum, fertilizers, and information technology.

The sharp market correction on December 10th was mainly due to profit-taking pressure in Vingroup stocks and a weakening of large capital flows. However, this decline is unlikely to be too negative as the impact is not widespread and many sectors still maintain their attractiveness. With capital tending towards small and medium-sized stocks, investors are advised to be cautious but not pessimistic, while also monitoring investment opportunities in sectors that are expected to benefit in the latter part of the year and the beginning of next year.

Source: https://thoibaonganhang.vn/vn-index-mat-28-diem-dong-tien-roi-bluechips-tim-den-co-phieu-nho-174924.html