VN-Index plummets, losing all efforts after an "explosive" session in just 1 month

Ms. Ngoc Tram (34 years old, Dong Da District, Hanoi, a long-time stock investor) said that since the September 2nd holiday, she has not made any transactions on the floor because she saw signs of fluctuations. In fact, from the beginning of September until now, the VN-Index has dropped sharply by more than 36 points with weak liquidity.

Red color spreads, cash flow is cautious

Opening the first session of the week, September 16, 2024, VN-Index ended at 1,239 after falling nearly 13 points (equivalent to a 1% decrease), the official index fell below the 1,240 point threshold.

Thus, since the strong increase of nearly 29 points on August 16, 2024, recovering to the threshold of 1,250 points, the VN-Index seems to be "losing" all efforts in the past month, when returning to the point area before the "explosive" session.

The market was red with 469 stocks falling and 227 stocks rising. At the same time, market liquidity increased under strong selling pressure, reaching over VND13,400 billion, up 15% from the previous session. However, in general, cash flow was still cautious compared to 2 weeks ago.

Specifically, in the case of Ms. Ngoc Tram (34 years old, Dong Da District, Hanoi), a long-time investor, since the September 2nd holiday until now, she has not made any transactions on the floor: "Since the end of August, I have seen signs of market fluctuations quite a lot, so I have been more cautious in trading. Up to now, there have been no specific signs of improvement, so I temporarily set the goal of preserving assets as the most important. In addition, if there is an opportunity, I will sell some stocks to reduce the proportion."

"Red" continues to dominate the entire market

79% of industries decreased in price

The entire market has 19/24 industry groups decreasing in price (79%) , in which the real estate group "extended" the negative trend from last week when it decreased by nearly 1.5%, with the participation of many large codes such as VHM (Vinhomes, HOSE), VIC (Vingroup, HOSE), PDR (Phat Dat Real Estate, HOSE), NVL (Novaland, HOSE), DIG (DIC Group, HOSE).

Financial stocks: banks and securities also recorded negative developments such as: HCM (HCMC Securities, HOSE) decreased by 3.4%, VIX (VIX Securities, HOSE) decreased by 2.2%, CTG (VietinBank, HOSE) decreased by 0.7%, TPB (TPBank, HOSE) decreased by 0.8%,...

In addition, the steel, consumer and oil and gas industry groups were also in the red, down about 1%.

Only the Chemical group remained balanced until the end of the session thanks to GVR (Vietnam Rubber Industry, HOSE) increasing by 0.9%, DDV (DAP - VINACHEM, HOSE) increasing by 0.6%, DPM (Fertilizer - Petrochemicals, HOSE) increasing by 0.6%,...

NAB hits new high, going against the market backdrop (Photo: SSI iBoard)

Going against the market trend, a "bright spot" appeared in NAB (Nam A Bank, HOSE) which "increased to the ceiling" by more than 6%, reaching the highest historical price of 17,500 VND/share, helping the index narrow the decrease range.

Next, D2D (Industrial Urban Development No. 2, HOSE) and BMP (Binh Minh Plastic, HOSE) also attracted strong cash flow in the gloomy market context, increasing by 5.25% and 2.86% respectively.

After two consecutive sessions of net selling at the end of last week, foreign investors reversed their net buying, reaching more than 240 billion VND, led by TCB (Techcombank, HOSE) with 70 billion VND, NAB (Nam A Bank, HOSE) with 54 billion VND,...

On the contrary, in the net selling direction, HSG (Hoa Sen Steel, HOSE) led with 43 billion VND, MWG (Mobile World, HOSE) was 41 billion VND, VCI (Vietcap Securities, HOSE) was 34 billion VND.

Psychology waiting for clear economic signals

Faced with the current "quiet" trend of the market, analysts say the main reason comes from the lack of positive information from the economy to create growth momentum for the market.

According to Mr. Do Thanh Son, Head of Investment Consulting, Mirae Asset Securities, it is clear that the economy is still quite fragile, all attention is focused on (1) the impact of the recession in major markets, (2) the recovery in the last two quarters of the year is not as expected, (3) the US President's policies in the upcoming term can create many unpredictable developments, especially foreign trade policy.

In addition, the whole market is waiting for information from the macro economy, typically the move to lower interest rates from the US Federal Reserve (Fed) this September.

Although in a negative trend, many experts still expect that the market still has positive room for growth in the last months of the year, such as: the real estate market is gradually recovering, followed by many other industries that will also grow: iron and steel, construction materials, etc. Along with that, the economic recovery will lead to an increase in commodity prices.

Mr. Son added that although there is still selling pressure from foreign investors, the selling pressure is expected to decrease soon in the second half of September thanks to capital flows showing signs of returning to Southeast Asia. This could also be a positive signal for the market in the coming time.

Source: https://phunuvietnam.vn/nua-thang-vn-index-mat-36-diem-tam-ly-e-ngai-bao-trum-len-nha-dau-tu-20240916173109495.htm