Vietnam stock market slips as state-owned stocks retreat after rally

VN-Index hovers around 1,770-point mark

Vietnam's benchmark VN-Index edged lower on Tuesday as investors adopted a cautious stance amid profit-taking activity and mixed performances across major sectors.

Liquidity softened from the previous session, with more than 640.8 million shares worth VND16.01 trillion (US$610 million) changing hands on the Ho Chi Minh City bourse.

Gas distributor GAS was the largest drag on the index, shaving off 1.16 points, while airline operator MVN and lender VCB also weighed on the market.

Banking stocks showed mixed performance as profit-taking pressure pushed TCB, VPB, and CTG lower. In contrast, LPB, MBB, and OCB posted gains, with LPB rising 2.7 percent to lead the group.

Brokerage stocks helped support the market, with VIX rising 1.8 percent, TCV and CTS each gaining two percent, BSI adding one percent, and HCM climbing 2.1 percent. Meanwhile, VND slipped 0.9 percent.

Retail stocks were among the session's bright spots, with FRT hitting its daily ceiling price, while MWG, DGW, and PET also advanced. PNJ, however, declined 3.1 percent.

Real estate developer VIC was unchanged, while VHM gained 0.7 percent. VRE slipped 0.4 percent. THD jumped 4.7 percent, KDH added 0.3 percent, and NLG rose 0.4 percent. DXG was flat, while DXS advanced 1.2 percent.

Among industrial stocks, GEX inched up 0.3 percent, while GMD fell 1 percent, VSC dropped 2 percent, and CII lost 0.4 percent. In the materials sector, HPG edged down 0.2 percent, while DPM gained 0.2 percent.

State-owned stocks retreat

Many state-owned and state-backed stocks came under selling pressure after surging on Monday.

GAS, GVR, and BCM fell 2.9 percent, 1.3 percent, and 0.4 percent, respectively, after hitting their daily ceiling prices in the previous session.

Trading activity in the group also declined from the previous day, with more than 1.5 million GAS shares and 2.5 million GVR shares changing hands.

Other decliners included PLX, down 2.4 percent; BSR, 2.1 percent; VGI, 2.6 percent; IDC, 0.6 percent; POW, 0.7 percent; and BVH, 2.2 percent. In contrast, VTP gained 2.1 percent and KSV rose 2.8 percent.

Investor sentiment turned more cautious following the previous session’s rally, which had been driven by expectations of potential restructuring plans, state divestments, and changes in ownership ratios.

However, the implementation of the relevant policy does not mean enterprises will immediately proceed with divestments or ownership adjustments. Specific plans must still be developed and approved on a case-by-case basis.