The benchmark VN Index inched down 0.05 percent to close at 1,062.96 points after having rallied by a total of 5 percent in the previous six straight sessions.

The minor HNX Index on the Hanoi Stock Exchange fell 0.36 percent to end at 121.59 points. It gained 1.06 percent on January 15.

More than 406.6 million shares were traded on the two local exchanges, worth nearly 9.2 trillion VND (408.4 million USD).

The trading figures were up 13 percent in volume and 6 percent in value compared to the numbers on January 15.

Market trading condition turned slightly negative with 237 declining stocks against 214 gainers. Another 144 other stocks ended flat.

Large-cap stocks were in negative territory with 16 of the 30 largest shares by market capitalisation in the VN30 Index falling, pulling the large-cap index down 0.12 percent to 1,506.83 points.

The worst decliners among those stocks included steel producer Hoa Sen Group (HSG), Kinh Bac City Development Holdings (KBC), Sacombank (STB), Coteccons Construction (CTD) and FLC Faros Construction (ROS).

HSG slumped 4.4 percent after Hoa Sen Group on January 16 announced at its annual shareholder meeting that it targeted 1.35 trillion VND in post-tax profit, a yearly reduction of 10 percent.

STB was down 2.6 percent after about 83 million shares in the bank were put up for sale and ROS fell 2 percent from a three-day increase of 2 percent.

On the positive side, shares in agricultural firms Hoang Anh Gia Lai (HAG) and HAGL Agrico (HNG) soared 7 percent and 5.7 percent respectively after they were removed from the warning list issued by the State Securities Commission.

Strong investor selling pressure was another factor that pushed the stock market down on January 16. This relates to a draft policy on raising the ratio of initial margin deposit at securities companies that may be passed by the State Securities Commission, according to Sai Gon-Hanoi Securities Company (SHS).

“Today’s correction might be the results of investor reaction regarding yesterday’s news on ‘margin lending contraction’,” Viet Dragon Securities Company (VDSC) said in its daily report.

“The news could affect the market in the short-term, but it will not possibly create a significant correction,” VDSC said.

Sharing the same market outlook, SHS said that investor confidence remained strong on January 16. This helped the VN Index rebound from its intraday low of 1,052.43 points.

“The VN Index could continue struggling against investor selling pressure after it rising significantly to a range of 1,060-1,070 points,” SHS added.-VNA