The Vietnamese stock market started the new week in a stormy manner and witnessed the largest decline in the history of the Vietnamese stock market in more than 25 years.
At the end of today's session, October 20, VN Index decreased by 94.76 points, equivalent to 5.47%, down to just over 1,636 points. The entire HoSE floor recorded 325 codes down, of which 108 codes had a total decrease in range. On the other hand, there are only 34 increases.
The VN30 basketball electricity table recorded 100% of the decrease in codes, including nearly half of the floor decrease in codes. This is the most intense session with points, almost all investors, looking at today's electricity billboard with their lost eyes, not understanding what was happening.
Today's decrease is the driving force to bring cash flow back to the electricity board. According to statistics, today's session, HoSE recorded more than 1.7 billion shares being "sold out" with a total trading value of more than VND53,000 billion. The trading session has 5 codes with a trading value of more than VND 2,000 billion: SSI, HPG, SHB, MSN and GEX. However, all 5 stocks closed at the floor price.
Notably, not only domestic and foreign investors also competed to sell strongly in the session. Specifically, foreign investors net sold more than VND 2,000 billion on the HoSE. Of which, the most net-sold code is MSN with 652 billion VND. Next are CTG, STB, SSI, HPG, VND, VCI, SHB, DXG codes.
Analysts entering today's session all had negative comments about the market after the Government Inspectorate informed about violations in the issuance of corporate bonds by a number of enterprises. Among them, MSN shares were reduced to 6. 10% of the floor price to 81,900/share with more than 31 million shares traded in today's session and a floor profit of more than 5 million shares.
Novaland's NVL shares also failed to break even with prices reaching the threshold of VND 15,450/share after the Inspection Conclusion was announced on October 17, and the Government Inspectorate transferred the files of cases with signs of violations at Novaland and related companies to the Ministry of Public Security for consideration and handling. There are nearly 70 million NVL shares traded with a floor balance of more than 20 million shares.
However, the fact that investors are massively selling off the remaining stock codes has also surprised experts. The three Vingroup stocks, which have been a pillar of the market in recent times, have also decreased sharply and VIC-VHM alone has taken away more than 13 points from the general index. Thus, the VN-Index has decreased sharply for 2 consecutive sessions with a total of 130 points from the peak.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that fluctuations in the growth cycle are inevitable. It is completely normal for the market to increase or decrease by 5-10%. Domestic cash flow is still supporting, but foreign investors continue to net sell (anhanh maintain an average of VND1,800 - 2,000 billion/session), self-employed and investors are also having a net selling trend, causing the index to have downward pressure to adjust, especially the decrease in the price of the Vingroup group. It is forecasted that the market may continue to decline and the support zone is 1,680 - 1,700 points.
"This leads to a return to breaking the 1,800-point threshold, which will be more difficult if the recovery process is not strong enough. It is necessary to monitor the accumulation status to have a more objective view. Investors should also not take the bottom at this time when investors' strong selling psychology is still large and the story of being "called to margin" will soon appear in the next trading session", Dr. Phuong stated his opinion.
