The Vietnamese stock market took a dramatic turn on Friday, with the VN-Index plunging by a staggering 36 points, leaving investors on edge. But what caused this sudden drop?
A sea of red on the Ho Chi Minh Stock Exchange (HoSE)
The trading day witnessed a flood of red as 236 stocks tumbled, far outnumbering the few that managed to stay in the green. This mass retreat indicates a heightened sense of caution among investors, many of whom were quick to secure profits. But here's where it gets intriguing: despite the market's downward spiral, trading volume surged, reaching an impressive VNĐ42.1 trillion ($1.6 billion).
VN30-Index: A tale of decline
Among the VN30, a group of the 30 largest stocks on HoSE, the story was no different. A whopping 26 stocks witnessed a decline, with only 3 showing resilience. The index itself took a 2.23% hit, shedding 45.13 points to close at 1,977.14.
Vin-stocks and financial sectors feel the heat
The Vin-stock group, along with securities and banking stocks, bore the brunt of the selling pressure. Vinhomes (VHM) led the fall with a 4.9% drop, while Vingroup (VIC) and Vincom Retail (VRE) also suffered notable corrections, shedding 4.27% and 5.53%, respectively. And the banking sector joined the fray, with VPBank (VPB), Vietinbank (CTG), LPB, and BIDV (BID) all posting significant losses.
Securities sector joins the decline
The securities sector wasn't spared either, with VIX Securities (VIX), SSI Securities Corporation (SSI), Vietcap Securities (VCI), Ho Chi Minh City Securities Corporation (HCM), and MB Securities (MBS) all facing downward pressure. And in a surprising twist, Masan Group (MSN), which had been on a tear following news of a substantial block trade by SK Invest Vina I Pte. Ltd., reversed course, slipping by 0.23%.
HNX-Index follows suit
The HNX-Index on the Hanoi Stock Exchange mirrored the broader trend, slipping by 0.97 points or 0.35%, to 276.11. Trading volume here was relatively modest, with over 104 million shares changing hands, valued at VNĐ2.7 trillion.
Foreign investors join the sell-off
Adding fuel to the fire, foreign investors flipped their buying stance, offloading a substantial VNĐ2 trillion on HoSE and VNĐ144.58 billion on HNX. This shift in sentiment raises questions about the market's near-term trajectory. Will the selling pressure persist, or will bargain hunters step in to stabilize the market?
And this is the part most people miss: while the market's decline may be disheartening for some, it presents a potential buying opportunity for others. But is it a dip to buy or a sign of further troubles ahead? The answer may lie in the upcoming earnings season and the broader economic outlook. What's your take on this market move? Share your thoughts in the comments below!
