The VN-Index ended up at 500.35, losing by 6.06 points, or 1.2%, against last Friday. Turnover on the southern bourse rocketed by nearly 54% to VND1.6 trillion.
FLC again led the market in terms of volume with 11.3 million shares changing hands, followed by ITA with 5.8 million shares and HQC with 4.9 million shares. Most industries dropped back, in which construction and material groups were the worst performers.
On the Hanoi market, the HNX-Index also lost 0.98 point, or 1.44%, against the previous session to close at 66.95 with liquidity falling 30% to nearly VND487 billion.
Viet Capital Securities Company said market breadth was negative on both bourses, with the number of losers outstripping gainers by more than four times on the southern bourse and two times on the northern exchange.
“Smaller caps in particular suffered from accelerated selling pressures in the afternoon, which made us wonder about a margin related event,” it said.
Foreigners remained active and continued to net buy on both exchanges with a total buying value of VND124 billion. On the Hanoi market, 80% of the foreign net buying value was on electronic and computer retailer Tran Anh Group (TAG) alone.
Viet Dragon Securities Company (VDSC) noticed that although downward signals showed up at the beginning of the session, selling pressure was not strong enough to drag the market down and the VN-Index hovered around the reference level in the morning.
However, sellers turned more active in the afternoon and the index closed at near the supporting level of 500 points, the lowest level over the past six weeks. Cash flow still focused on speculative stocks, especially real estate tickers, even though the stocks also declined.
“For the market trend in the coming days, we think that the possibility of further decline is quite high. However, the market is expected to fluctuate in a narrow range and stay above the 500-point line on the last day of 2013,” VDSC said.
The VN-Index has entered short-term correction after dropping below the 502-point level on Monday while the HNX-Index has also seen clearer signs of correction. Both indices have seen bad signals and participation in the market now may fetch a lot of risks. Investors are recommended to stop disbursement and observe the market carefully, the broker added.