This week, the stock market witnessed mixed developments. Not long after reaching its peak, the VN-Index quickly fell into the abyss, causing heavy losses for investors.
Specifically, at the end of July, the VN-Index successfully conquered the important milestone of 1,200 points. After that, this index continuously increased to record the highest level of 2023 at 1,243.26 points in the session of August 16.
Because of the strong increase, when VN-Index decreased significantly in the session of August 17, investors remained calm and believed that it was just a correction session. VN-Index will continue to be excited because the cash flow is gradually shifting from savings to stocks.
After only 2 days, 260,746 billion VND "flew" from the accounts of stock investors when the market was sold off. Illustrative photo
However, all of the investors' calculations turned out to be wrong due to external factors. On the night of August 17, the global financial market was shaken by the event of Evergrande, China's second largest real estate company, filing for bankruptcy. Previously, in 2021, Evergrande had shaken the financial world when it was exposed to the risk of defaulting on bonds.
As a result, in the session of August 18, a widespread sell-off occurred, causing the VN-Index to drop more than 55 points to only 1,177.99 points. VND260,746 billion was "evaporated" from the account after only 2 trading sessions. Compared to the end of last week, the market capitalization of the Ho Chi Minh City Stock Exchange lost VND216,612 billion.
VCBS Securities Company commented that VN-Index recorded a week of strong fluctuations in trading, with the highlight being the sharp drop in points in the last Friday session of the week (August 18), thereby erasing the gains of the previous 3 consecutive weeks.
Trading volume this week also continued the upward trend compared to last week and was the fourth consecutive week that trading volume exceeded the average since the beginning of June.
A new record was set with 1.6 billion shares matched on the HoSE, the highest in the history of the Vietnamese stock market. Investors' desire to sell shares at all costs caused a series of stocks to hit the floor, 240 stocks fell to the limit in the last trading session of the week.
VCBS said the current trend of the index is relatively negative, so investors should consider decisively reducing the proportion of stocks to manage risks.
“However, investors should watch for recovery periods during the session to reduce their holdings, but it is not necessary to sell at all costs. At the same time, they can still pay attention to stocks that are in the accumulation price range and have not fluctuated much in the recent past to look for disbursement opportunities when the market stabilizes again in the near future,” VCBS advised investors.
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