The VN-Index on the southern bourse fell on sluggish trading on July 30, following a technical rebound on the previous day.

The VN-Index lost 2.91 points, or 0.49 percent, to end at 589.33 points, as the benchmark index fluctuated with narrow amplitudes during the session, with a modest capital inflow as buyers displayed a cautious psychology.

More than 81 million shares changed hands, valued at 1.68 trillion VND (79.2 million USD), slightly above the previous trading.

On the southern bourse, 85 codes advanced, while 109 posted losses and 83 others tread water. Tracking the performance of the exchange's largest stocks by capitalisation and liquidity, the VN30-Index ended 0.71 percent lower, at 629.07 points, with decliners overwhelming advancers by 18-7.

Also, the loss of large-cap stocks late July 30 afternoon widened the VN-Index drop.

Those included market pillars such as Masan Group (MSN), which slid 2.82 percent to 88,500 VND (4.17 USD), along with Bao Viet Holdings (BVH), Vinamilk (VNM), Da Nang Rubber Corporation (DRC) and Kinh Do Corporation (KDC).

Meanwhile, FLC Group (FLC) finished up 3.1 percent at 12,900 VND (0.6 USD) per share, with a significant 24 million shares changing hands – topping the bourse by trading volume – on positive second quarter earnings with the expected release for sale of FLC Garden City and FLC Complex 36 Pham Hung at the end of this year.

FLC was followed by Sacom Investment and Development Corporation (SAM) by trading volume, with 5.1 millions shares traded, 1.29 million of which were purchased by foreign investors. The stock ended up 6 percent to 10,600 VND (0.5 USD) per share.

The arrest of three officials, who held top management positions at Vietnam Construction Bank, lowered stock values in the banking sector on July 30.

Excluding BIDV (BID) and Sai Gon-Hanoi Bank (SHB), other banking stocks closed down, including Eximbank (EIB), Military Bank (MBB), Vietcombank (VCB), Sacombank (STB) and Vietinbank (CTG).

Both the HNX-Index and the HNXFF-Index, composed of stocks with minimum free float rates of 5 percent, ended flat at, respectively, 78.28 points and 78.07 points on a low-pace trading.

The HNX30-Index added 0.04 points, or 0.03 percent, to finish at 155.61 points.

The trading volume and value were modest at 26.5 million shares and 322.1 billion VND (15.2 million USD).

According to Vietnam Investment Securities, the market showed little reaction to the information that Moody's upgraded Vietnam's credit rating, reflected through more than 500 codes ending unchanged together, with hundreds seeing no transactions on July 30.

The company said investors should lower holdings of stocks in their portfolios until market opportunities become more transparent.

A losing trading session was expected today, as Vietnam Investment Securities said that the VN-Index would drop to 585 points before beginning a challenging August.-VNA