Stock market plummets after holidays, selling pressure spreads

Gia Miêu |

Widespread selling pressure increased, causing the stock market to decline sharply after the holidays.

Last week during the holiday, VN-Index increased by 64 points, equivalent to 3.62%, to 1,832.12 points. Liquidity remained quite active, combined with foreign investors switching to net buying, reflecting increased demand and absorbing profit-taking selling pressure.

During the recent holiday period, not much noteworthy domestic information appeared, but mainly from the international market, surrounding the US-Iran conflict, and the risk of the Fed raising interest rates.

And right from the opening of the first trading session after the holidays (September 3rd), the Vietnamese stock market was quite gloomy after the long holiday when cash flow was still mainly outside of observation. Meanwhile, selling pressure returned widely, causing red to prevail on the electronic board and VN-Index turned to adjust after 7 consecutive increasing sessions.

After the ATO session, VN-Index immediately decreased by more than 28 points (as of 10:30 am) to near the 1,800 point threshold. When the pillar stock groups of banking, securities and steel, and real estate all decreased, in which the large stock VIC alone took away more than 11 points of the general index.

A series of bank stocks are also under downward pressure, such as TCB down 1.65%, VPB down 1.44%, VCB down 0.83%, CTG down 0.94%... In the securities group, SSI, VIX, VCI, VND, SHS... are stocks that quickly decreased significantly.

In the context that most groups are adjusting, the energy stock group is at the center of the market as most codes are trading well due to the strong increase in world oil prices. Specifically, after the US and Iran launched military attacks on each other, ending many relatively quiet weeks in the Middle East, oil prices increased sharply, with Brent oil increasing by about 1% to above the 95 USD/barrel mark, while WTI crude oil also recorded an increase of nearly 1% to the 91 USD/ounce mark.

Currently, stocks BSR, PVD, GAS, PLX, PVT, PVC all recorded an increase of more than 1-2%, sometimes increasing by more than 3%.

Kafi Securities Company notes that the upward momentum is slowing down as the upward momentum depends heavily on the pillar group. VN-Index may continue to test the 1,830 - 1,850 point zone, while the 1,800 - 1,810 point zone is near support that needs to be maintained to maintain momentum. Kafi recommends investors to continue holding leading stocks, limit chasing purchases in the resistance zone and disburse partially when the market adjusts.

ACBS Securities Company also noted that the upward momentum of the period before the holidays still focused significantly on the large-cap group, especially VIC. The increase of this stock alone contributed more than 52 points to VN-Index in the week, showing that the upward momentum has not really spread widely throughout the market.

ACBS believes that the state of tug-of-war or accumulation may continue in the short term.If VN-Index well protects the support zone of 1,800 points during the accumulation process, the upward trend is likely to be consolidated, opening up the possibility of reaching the historical peak of 1,900-1,930 points.



Gia Miêu
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