Today's trading session (July 29) witnessed a fierce sell-off in the Vietnamese stock market, causing the VN-Index to fall more than 64 points - one of the sharpest declines in history. The selling momentum increased sharply from the beginning of the session on July 29, causing the VN-Index to lose 15 points, then 30 points, and end the session down more than 60 points.
At the end of the trading session on July 29, the VN-Index lost 64.01 points (-4.11%) to 1,493.41 points. This was one of the 5 sharpest declines in the Vietnamese stock market ever.
However, liquidity increased sharply to a historical peak of nearly 72 trillion VND on HoSE.
The selling pressure was so strong and widespread that 387 stocks decreased in price across the market, of which 71 stocks hit the floor. Only 55 stocks increased in price and 28 stocks remained unchanged. The 30 key stocks on the stock exchange all fell sharply; of which, 4 stocks hit the floor and several stocks fell near the floor.
The stocks with the biggest decline in the VN30 group are SSI Securities (SSI), Masan (MSN), TPBank (TPB) and HDBank (HDB).
The stocks of the Vin family also fell sharply. Vingroup (VIC), chaired by Vietnam's richest billionaire Pham Nhat Vuong, fell 2,400 VND to 113,200 VND/share. Vinhomes (VHM) fell 3,500 VND to 92,100 VND/share.
Foreign buying and selling is quite balanced.
Vietnamese stocks fell across the board amid a sharp increase, from around 1,100 points in mid-February to a historic peak of 1,557.42 points at the end of the trading session on July 28 - the 25th anniversary of the founding of the Vietnamese stock market. The increase was more than 40%.
The strong selling phenomenon occurred in the context of a massive cash flow pouring into the stock market in recent sessions, from a threshold of about more than 1 billion USD to up to 2 billion USD per session.
The money flowing into stocks, as usual, is largely from individual investors looking to make a profit when the stock market enters a period of strong growth. The number of securities accounts has increased over the past several months.
The sharp increase in selling pressure also coincided with the time when outstanding loans of securities companies reached more than VND300 trillion, surpassing the peak in 2022, the highest ever, even higher than when the VN-Index reached 1,535 points in 2022.
The series of days of continuous price increase of VN-Index, surpassing the thresholds of 1,400 points, 1,450 points and 1,500 points as well as a series of stocks (especially banking group) reaching all-time highs... has attracted the attention of individual investors.
However, this is also the time when profit-taking activities increase, especially selling pressure from large investors and investors who have been holding from low prices a few months ago. Profit-taking is completely normal.
Sharing with VietNamNet reporter, Mr. Luu Chi Khang, Director of Research Center of CSI Securities Company, said that the market price decrease was due to profit-taking selling pressure. Investors who bought cheap stocks earlier have realized profits and sold them to make a profit. The adjustment is normal.
Ms. Tran Thi Khanh Hien, Director of Research, MB Securities Company, believes that when the market increases strongly, there must be washout sessions. This is considered a profit-taking session.
Regarding the factors affecting the market, according to Mr. Luu Chi Khang, "they have not changed compared to previous days".
CSI representative commented that money is still pouring into the market. From the bottom of VN-Index set in April (April 9) to the present time, VN-Index has had a very impressive increase (+43%) in a period of more than 3 months without any notable correction.
In a report earlier this week, CSI analyzed that if we look back at recent historical data, from when the market bottomed out in March 2020 to 2024, impressive recoveries with average increases (43%-45%) will be followed by a slight correction (7%-15%), before returning to a strong uptrend.
History may repeat itself, but not exactly the same. The VN-Index has recently increased very strongly and is approaching the statistical milestones, investors are starting to think about preserving profits and considering reducing the proportion of stocks and gradually increasing the proportion of cash.
According to the CSI representative, the stock market is still good in the medium term. The correction on July 29 is "very normal" after the previous hot growth. The surprising point is the large amplitude and record liquidity.
Normally, the market drops sharply and trading spikes when there is bad news or negative macro policies. But nothing has changed in the past few sessions. Large liquidity also means that many people are betting on buying and can be called bottom fishing.
Source: https://vietnamnet.vn/ban-thao-manh-gan-3-ty-usd-chung-khoan-lao-doc-2426752.html
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