Seizure pressure causes stocks to lose the 1,700 point threshold

Gia Miêu |

The decline of the stock market is not only maintained but also has an expanding trend, showing that selling pressure is dominating compared to bottom-fishing demand.

Entering this morning's trading session (July 22), the Vietnamese stock market opened in a state of tug-of-war with a clear psychological differentiation. There has been support from the banking and technology stock groups right from the opening of trading, but before the fairly strong selling pressure of some large-cap stocks, the VN-Index could not reverse direction. The widespread decline shows a cautious psychology covering the entire market, not just locally a group of industries.

Closing the morning session on July 22, VN-Index decreased by 37.66 points (-2.18%) to 1,692.90 points with 63 gainers, while there were 250 losers. Total trading volume reached 413.7 million units, worth 10,484 billion VND, up 36.6% in volume and 53.6% in value compared to yesterday morning's session. In which, negotiated transactions contributed 22.3 million units, worth 504 billion VND.

The focus of attention is PNJ shares. The announcement of SSI Securities Company to cut margin for PNJ, along with information related to PNJ adjusting the diamond repurchase policy, selling pressure continued to increase, causing this stock to fall to the floor price of 35,500 VND. Closing the morning session, PNJ matched orders for more than 7.3 million shares and still had a surplus for selling at the floor price of more than 16.5 million units.

Although PNJ fell to the floor, the impact on VN-Index was not too great. The main pressure on the index still came from the Vingroup group when VHM decreased by nearly 5.4%, VIC decreased by 3.5%, VRE decreased by nearly 3.5% and VPL decreased by 2.32%. In addition, MWG and many bank stocks also put significant pressure on the market.

The stock market has not yet shown any reliable recovery signals, especially after officially losing the important support level of 1,700 points. The downward trend is not only maintained but also tends to expand, showing that selling pressure is dominating against bottom-fishing demand.

In the short term trend, VN-Index continues to weaken, falling sharply when it does not maintain important support zones such as the 200-session average price, psychological support of 1,700 points. In the less positive case when selling pressure continues to increase, VN-Index may continue to decrease to the 1,670 point zone, corresponding to the lowest price zone in April 2026 and will recover back to the price zone around 1,700 points.

Under pressure to sell to reduce the margin balance ratio, investor sentiment is pessimistic, somewhat disappointed with the market developments.Many stocks are under strong selling pressure, market capitalization has decreased to equivalent or below the equity of enterprises, while enterprises are still operating positively, asset quality, and good equity.

Currently, total market capitalization (excluding Vingroup) is about 296 billion USD, with basic valuation parameters P/E 10.57; P/B 1.55; equivalent to times at the bottom of the crisis.The big difference is that the margin lending ratio on market capitalization is currently very high.

However, many quality, growing businesses have a current P/E ratio of about 4-8, low P/B ratio, an attractive level to consider investing.Therefore, although market quality is still weak, uncertain pressures in the world market continue.

Many securities companies believe that once risks are well controlled, investors should consider investing in quality, growing businesses in the current price range.This is a stage where investors need to closely observe price actions in this support zone instead of rushing to bottom-fish.

Gia Miêu
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