After having a slight increase session yesterday, the VN-Index entered today's session (August 19) with quite clear adjustment pressure. Technical factors and the less positive developments of the international market make investor sentiment more cautious.
Notably, in the afternoon session, VN-Index at one point was pushed down below 1,720 points, setting the lowest level of the day as pressure in the banking group increased. However, demand in some large-cap stocks, notably VNM with support from foreign investors, along with VIC maintaining the reference price and the slowdown of the banking group's decline, helped the index narrow the decrease.
Closing the session on August 19, VN-Index decreased by 5.33 points (-0.31%) to 1,726.69 points. Market breadth clearly leaned towards the selling side with 220 declining stocks, while only 97 gaining stocks.
Liquidity continued to decrease with the total trading value across the market reaching just over VND 14,900 billion, of which the matched order value on HOSE reached over VND 10,020 billion, the lowest since the session on June 11.
This is also the third consecutive session that liquidity on HOSE is maintained around the low zone. Previously, in the first session of the week on August 17, the matched order value on this exchange was only about 10,500 billion VND. Looking broader, the trend of liquidity decline has lasted since after April. In the second quarter of 2026, the matched order transaction value on HOSE decreased by about 31% compared to the first quarter of the year.
This development shows that cash flow is still not really ready to return to the market at a time when VN-Index is under adjustment pressure. Liquidity is concentrated quite largely in some banking and securities stocks, but has not created the necessary spillover effect to support the index.
Pressure from foreign investors has not cooled down either. In the session on August 19, foreign investors continued to net sell about 710 billion VND on HOSE. Previously, in the weeks of August 10-14, this group net sold more than 2,000 billion VND across the entire market. Domestic cash flow therefore still had to play a key role in absorbing the amount of shares sold by foreign investors.
The low market liquidity is even more noteworthy as the market is facing important milestones related to upgrades. According to the plan, FTSE Russell is expected to announce the portfolio of Vietnamese stocks in the FTSE Global Equity Index Series in the early morning of August 21, before the upgrade to the secondary emerging market takes effect from September 21.
However, it can be seen that capital flows from the upgrade process will not appear at a single time. For passive funds, capital allocation will take place in stages when the portfolio is restructured. Therefore, although the expectation of foreign capital flows in the medium and long term is still present, the market in the short term still has to rely largely on domestic demand.
The current valuation is in an attractive range, but the domestic interest rate level is unlikely to decrease sharply in the context of high credit demand. The deposit interest rate level and yields of investment channels are less risky, so it may create more competition for cash flow in the stock market.
In the current context, investors may start accumulating but need to choose a business with a foundation and sustainable profit growth, instead of buying simultaneously on a large scale. This approach also partly reflects the current state of the market: valuation is no longer too high, business prospects have not deteriorated, but cash flow still needs strong enough catalysts to return.
