At the end of the first trading session of August, VN-Index decreased by 24.55 points (-1.96%) to only 1,226.96 points; HNX-Index decreased by 6.13 points to 229.23 points while Upcom-Index decreased by 1.55 points to 93.52 points. Liquidity on HoSE increased compared to recent sessions when it reached more than 852 million shares, with a trading value of more than VND 21,300 billion.
The market developments in today’s trading session caused investors to panic and sell off. Investors no longer expect the market to recover strongly, because a single session of decline has wiped out the recovery efforts of the whole previous week. A series of stocks in the securities, real estate, steel, chemical fertilizer, food sectors… fell to the floor price.
Many investors are wondering why stocks are falling despite the fact that there is not much bad news in the market, even good news related to the second quarter business results of listed companies; positive macroeconomic information about the national economy in the first 7 months of the year...
VN-Index plunged to near the bottom of the past 3 months, many stocks fell sharply in recent sessions. Photo: Hoang Trieu
"Just wait for the stocks in the portfolio to make a profit or break even and then sell to get the money back" is the common mentality of many investors.
Why do stocks of companies with both profit and loss business results decrease sharply? Experts from VPS Securities Company said that during this period, investors are afraid of a deep market decline, along with international geopolitical risks, so investors' psychology and behavior cause stocks, good or bad, with promising business results, to be sold off sharply.
Mr. Vo Kim Phung, Head of Analysis, BETA Securities Company, said that the market is likely in the process of re-testing the support zone of 1,200 - 1,220 points. Some recent news may have a negative impact leading to defensive actions of investors such as the savings interest rate level continuing to increase, unclear trading trends of foreign investors, geopolitical instability in the world and inflation...
"In any period, the market always has stocks with better performance than the general level and vice versa, depending on the prospects and potential of each group of stocks in the short and long term. Investors can restructure their portfolios, accumulate stocks of businesses with good growth potential, attractive valuations with a vision to the end of 2024 and 2025," said Mr. Phung.
According to VPS Securities Company, after increasing and touching the resistance of 1,257 - 1,260 points, VN-Index unexpectedly adjusted down deeply, instead of just fluctuating within the range of 1,255 - 1,260 points.
The market has been sharply adjusted, so investors should be cautious, especially short-term traders, and prioritize portfolio management over new purchases. This is especially true for investors who are holding many stocks. Accumulating purchases should only be applied to large investors and long-term investors.
Source: https://nld.com.vn/chung-khoan-lai-bi-ban-thao-vn-index-roi-tu-do-nha-dau-tu-hot-hoang-196240801154201085.htm
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