After a series of sublime days and continuously reaching new peaks, the stock market has just experienced a sharp decline with the number of red-handed stocks overwhelming. A series of stocks in the banking group after a period of strong increases in recent times have been taking profits by investors with quite large selling forces such as VPB, SHB, TCB, MBB, ACB... Some codes in the previous session increased dramatically, this session is on the floor.
At the end of the session on August 22, the VN-Index decreased by 42.53 points (-2.52%) to 1,645.47 points. VN30 decreased by 60.89 points (-3.25%) to 1,814.02 points. Liquidity continues to remain high, with the value of matching on HoSE reaching more than VND 60,000 billion.
Foreign investors continue to sell net more than VND1,500 billion on all three exchanges. This is the 12th consecutive session that foreign investors have released goods on the Vietnamese stock market, with a total value of more than VND 17,000 billion.
According to experts, the market has begun to show signs of distribution in the third session when liquidity in the last session was pushed to VND66,000 billion, previously the two sessions reached VND86,000 billion (August 5) and VND80,000 billion (July 29).
Technically, after the distribution sessions, it does not mean that the market will decrease immediately, but it is a sign that the market may enter a recovery phase in the process of going up or creating a fluctuation zone after a strong price increase.
The signal that can be felt intuitively is that in the past 3 sessions, the VN-Index has still increased by 1.1% but most of the stock market has decreased, with some groups having an average decrease of -3% to -4%, for specific stocks, the decrease may be even stronger.
This may be the period when the VN-Index has not increased or decreased much but the stock portfolio has suffered great damage, meaning that the index reference may not accurately reflect the developments of most of the stock market.
Current developments are reminiscent of the exciting period of 2021, when the increase was driven by favorable macro factors, positive business results and expectations of market upgrading. However, with the current P/E valuation approaching the 10-year average (about 15 times) and margin balance (margin) at a record high, profit-taking pressure is increasing, especially in stocks that have increased rapidly.
Dr. Nguyen Duy Phuong, Investment and Strategy Director of DG Capital, said that a short-term technical adjustment is necessary for the market to find a balance, reduce FOMO psychology and attract new cash flow into stocks with good fundamentals but not yet broken out. This will not change the medium- and long-term growth trend, which is reinforced by growth support policies and FDI inflows.
The current investment strategy needs to be more cautious, maintain discipline, closely monitor market signals and prepare for the possibility of short-term adjustments to optimize profits and limit risks. With high liquidity and the widespread FOMO mentality, controlling emotions and complying with investment plans are key factors, Dr. Phuong recommends.
