Stocks plummet, triggering margin call alarms.

The stock market is in freefall, with investors selling off their holdings for fear of forced liquidation. Photo: Le Toan

The plunge in Asian stock markets caused domestic investors to panic and rush to sell at a loss on August 5th. Without support from any large-cap stocks, the VN Index plummeted more than 48 points (equivalent to 3.92%) to 1,188 points.

Statistics show that at the close of trading on the HoSE, 448 stocks declined, including nearly 100 that hit the floor limit, while 24 stocks increased and 25 remained unchanged. Notably, all stocks in the VN30 basket fell, contributing 44 points to the index's decline.

Foreign investors also competed to sell in today's session. Statistics show that foreign investors sold a net 455 billion VND on the HoSE exchange, with HPG being the stock most heavily sold by foreign investors (231 billion VND).

Money continued to flow out of the real estate sector, causing most stocks in this sector to fall sharply. Next, the financial sector also saw significant declines, with leading bank and securities stocks dropping considerably. Today's sharp decline has put the market on alert, as numerous stocks are beginning to reach margin call thresholds.

One of the perceived causes of market instability is the influence of global stock markets. The sell-off that has rocked stock markets worldwide is overshadowing the prospects for investors looking to buy at the bottom, as concerns about the US economy and disappointing earnings reports from technology stocks threaten to potentially lead to further declines in the near future.

Meanwhile, Asian stock markets continued to face strong profit-taking pressure, particularly after the Bank of Japan (BOJ) returned to monetary policy normalization by raising interest rates and reducing the scale of government bond purchases.

Dr. Nguyen Duy Phuong - Investment Director of DG Capital - expressed a view leaning towards the scenario that the downward trend will continue, especially in the context of the rather risky global political and economic situation, and the stock markets in countries such as the US, Japan, and Europe have also witnessed deep declines. The psychological threshold of 1,200 has been breached, and it may fall to the old bottom of 1,165 - 1,175 before a recovery can occur if the proportion of oversold stocks increases and market sentiment reaches its limit.

Source: https://laodong.vn/kinh-doanh/chung-khoan-lao-doc-bao-dong-call-margin-1376270.ldo