The benchmark VN-Index on the HCM Stock Exchange ended in negative territory, dropping 1.02 percent to close at 1,076.03 points, marking the first bearish session after continuously rebounding for three consecutive days.

“We saw an increase in the colour red, which is considered a normal phenomenon for the market after a strong rally,” said Bao Viet Securities Company (BVSC) in its daily report.

The southern market index climbed 2.59 percent to close at 1,087.15 points on February 21.

The minor HNX Index on the Hanoi Stock Exchange edged down 0.92 percent to end at 124.70 points on February 22. It surged by 1.24 percent to end at 125.85 points on February 21.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) lost 0.15 percent to finish at 59.28 points, reversing from a rise of 1.5 percent in the previous session.

More than 266.4 million shares were traded on the three local exchanges, worth 7.24 trillion VND (318.2 million USD).

Declining stocks outnumbered the gaining ones by 393 to 248, while 800 other stocks ended flat.

Large-cap stocks underperformed, as 21 of the 30 largest stocks by market capitalisation in the VN30 Index suffered, pulling the large-cap index down 1.04 percent to 1,064.28 points.

Among the worst decliners in the VN30 basket are Bao Viet Holdings (BVH), down 4.3 percent; Hoa Phat Group Joint Stock Company (HPG), dipping 2.1 percent; Vietnam Dairy Products Joint Stock Company (VNM), declining 1.2 percent; as well as Vietjet Aviation Joint Stock Company (VJC), down 2 percent.

Banking stocks were sold strongly at the end of the day (only CTG and VCB increased). Petroleum stocks also underperformed.

The stocks that drove the banking sector down included Bank for Investment and Development of Vietnam (BID), Vietnam Prosperity Joint Stock Commercial Bank (VPB) and Military Commercial Joint Stock Bank (MBB). These bank stocks declined by 1.6 percent, 2.2 percent and 0.5 percent, respectively.

The energy sector was driven down by PetroVietnam Gas Joint Stock Corporation (GAS), PetroVietnam Technical Services Corporation (PVS) and PetroVietnam Drilling Mud Joint Stock Corporation (PVD), down 5.4, 4.4 and 6.3 percent, respectively.

Many large-cap stocks in the Unlisted Public Company Market (UPCoM) also suffered strong selling pressure, including Airports Corporation of Vietnam (ACV), down 0.4 percent, Vietnam Airlines JSC (HVN), losing 3 percent, Lien Viet Post Joint Stock Commercial Bank (LPB), dropping 1.4 percent and Masan Resources Corporation (MSR), decreasing 1.77 percent.

“The correction of the VN-Index today was seen as a normal phenomenon after a streak of gains. The market is likely to continue experiencing a divergence on low liquidity in the next sessions,” BVSC said.

“Investors can take advantage of the market’s corrections to open short-term positions in the next sessions,” it added.

According to BIDV Securities JSC (BSC), the market will continue to have technical corrections but the amplitude will gradually narrow before the formation of new prices.

“However, investors should not be worried when the macro picture is still very optimistic and the financial reports for Q1 and shareholder meetings are coming,” BSC said in its daily report.-VNA