The stock market has just experienced a dramatic trading session. Investors feel a sense of being on the go when the VN-Index sometimes drops nearly 40 points, but the bottom-fishing cash flow enters the game strongly, pushing the index back and closing in green.
At the end of the trading session on August 20, the VN-Index increased by 10.16 points to 1,664.36 points, setting a new historical peak. In today's session, HoSE recorded more than 1.4 billion shares successfully transferred, equivalent to a trading value of VND 68,080 billion. If including the remaining two exchanges, HNX and UPCoM, the total trading value today reached VND 74,860 billion.
Although foreign investors continue the net selling trend, the pressure has cooled down compared to previous strong " fried" sessions. The total net selling value on all 3 exchanges in today's session is only about 214 billion VND.
One of the pillar stocks that contributed greatly to the index in the session of August 20 was Vinhomes (VHM) - the "trump card" in the real estate sector of billionaire Pham Nhat Vuong. At the end of the session on August 20, VHM's market price increased by more than 5%, thereby climbing to a new peak of VND 99,000/share, 2.5 times higher than at the beginning of the year. Vinhomes' market capitalization also accordingly set a new record of nearly VND407,000 billion (USD15.5 billion). This is the first time in history that the capitalization value of this enterprise has exceeded the 400,000 billion VND mark.
The stock market is experiencing the most impressive increases in history, when it was continuously pushed to the dead end, the latest record was 1,664 points. Average liquidity reached a record of VND 32,800 billion/session in July and continued to be pushed to more than VND 50,000 billion/session in the first half of August.
According to analysts, the increase of the VN Index is supported by this huge cash flow, combined with the tax policy of US President Donald Trump and expectations of upgrading the stock market. In particular, the positive sentiment surrounding the upgrading event is expected to continue to lead the market in August and September, although statistics show a high risk of the "selling when reporting" effect.
In fact, overall, although 2/3 of the increase since the beginning of the year has been recorded, market valuations are still around the 5-year average and have not been stretched, meaning the increasing trend is maintained.
Currently, the current market valuation is not yet expensive but no longer cheap. At the same time, experts note that because the August period is often the period of low information about business activities of enterprises, combined with the valuation of the whole market no longer being cheap after a fairly quick price increase in 1-2 months.
Investors need to be on guard for strong fluctuations in the short term that may occur when the market has bad news that stimulates short-term profit-taking psychology.
One factor that investors need to pay close attention to is the move of foreign investors. After a period of strong net buying by foreign investors in July when President Donald Trump announced the counterpart tax rate for Vietnam at 20%, in the current period, foreign investors have shown signs of a strong return to net selling.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that recently, some investors have been waiting outside for an adjustment to participate, but when the market has not adjusted but has increased continuously, they are forced to join because they are afraid of missing out on opportunities. The problem is when investors enter the market with high leverage in such a psychological state, it leads to risks. With just one strong adjustment session, all results can be erased, even turning into losses.
