Investors "fall into traps" again, "catch the bottom" and slip
The October 31st stock market session began with investors feeling anxious. There are two different psychological waves affecting the market. While some believe that after the VN-Index fell so deeply, a bottom-fishing wave will appear, many others are pessimistic.
Right from the opening, the advantage belonged to the “optimists” when green quickly appeared. After that, VN-Index turned around but the decline was relatively light so investors were still temporarily reassured. Especially, from 11 am, green returned, “lighting up” hope.
Seeing green dominate the electronic trading board in the stock market session on October 31, many investors joined in “bottom fishing”. However, after the lunch break, the real tragedy appeared. The massive selling pressure caused the VN-Index to plummet.
The October 31 stock market session once again witnessed the scenario of investors "falling into a trap", pouring money into "buying the bottom" but in fact being dumped. Illustrative photo
At the close of the stock market session on October 31, the VN-Index fell 14.21 points, or 1.36%, to 1,028.19 points; the VN30-Index fell 8.25 points, or 0.79%, to 1,039.38 points. It can be seen that investors focused on selling off mid-caps and penny stocks, not blue-chips.
The entire Ho Chi Minh City Stock Exchange had only 66 stocks decreasing in price, 52 stocks remaining unchanged and 448 stocks decreasing in price (52 stocks hitting the floor). The VN30 group had 16 stocks decreasing in price, 4 stocks remaining unchanged and 10 stocks increasing in price.
Banking stocks were the main reason why the stock market avoided a free fall on October 31. Of the 10 blue-chips that increased in price, 7 were in the banking sector. VCB increased by VND900/share, equivalent to 1.05%, to VND86,800/share. VIB increased by VND300/share, equivalent to 1.7%, to VND17,900/share. VPB increased by VND100/share, equivalent to 0.5%, to VND20,000/share. ACB increased by VND100/share, equivalent to 0.47%, to VND21,400/share.
Liquidity in the stock market session on October 31 improved compared to yesterday but remained low. Only 756 million shares, equivalent to VND14,882 billion, were successfully transferred. The VN30 group had 215 million shares, equivalent to VND6,143 billion, traded.
On the Hanoi Stock Exchange, the indices fell at an exceptionally fast rate. At the close of the stock market session on October 31, the HNX-Index fell 5.17 points, or 2.45%, to 206.17 points; the HNX30-Index fell 15.92 points, or 3.78%, to 405.02 points. Liquidity dropped to a very low level, with only 110 million shares, or VND1,913 billion, changing hands.
Japanese stocks up on interest rates
Japanese stocks ended higher following the Bank of Japan's monetary policy decision, while other Asia-Pacific markets fell on an unexpected contraction in manufacturing activity in China.
The Bank of Japan kept its short-term lending rate unchanged and said it had implemented a more flexible yield curve control policy.
Elsewhere on Tuesday, China's manufacturing purchasing managers' index for October came in at 49.5, compared with a Reuters poll's expectations of 50.2. A PMI reading below 50 indicates contraction.
Japan's Nikkei 225 reversed earlier losses to end 0.53% higher at 30,858.85, while the Topix ended up 1.01% at 2,253.72.
South Korea's Kospi fell 1.41% to 2,277.99 and the Kosdaq fell 2.78% to 736.10.
Hong Kong's Hang Seng Index fell 1.69% in the final hour of trading, while mainland China's CSI 300 Index fell 0.31% and ended a five-day winning streak, ending at 3,572.5.
In Australia, the S&P/ASX 200 index ended the day up 0.12% at 6,780.7, recovering from its yearly low.
US stocks rose on Monday, with the S&P 500 ending the day just outside correction territory, as traders began a key week with the Federal Reserve's interest rate decision, the jobs report and Apple earnings.
The Dow Jones Industrial Average rose 1.58%, marking its best day since June 2.
The S&P 500 rose 1.2%, its best gain since late August. The Nasdaq Composite rose 1.16%.
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