Contrary to expectations, the VN-Index fell sharply by more than 13 points by the end of the morning session on August 2nd, dropping to near 1,210 points; the HNX decreased by 2.37 points to 226.86 points, while the Upcom also fell by 0.77 points to 92.75 points.
The market was dominated by red, with many stock groups in the banking, securities, port, food, oil and gas, and textile sectors experiencing sharp and very sharp declines. Only a few stocks showed signs of green. Many investors began to "leave the trading screen and turn off their apps," keeping liquidity low. The trading value on the HOSE exchange during the morning session was just over 6,600 billion VND.
"Blue-chip stocks, stocks in the VN30 index, and stocks with positive outlooks and large profits from their companies have all fallen sharply. Three months of gains are not equaling half a month of losses; all gains from the beginning of the year have been wiped out. Recommendations to buy stocks at good prices in support zones are also incorrect, as many good stocks in the securities, steel, and real estate sectors have also fallen below their support levels," said Thanh Nam, an experienced investor.
Stocks continued to fall. Photo: Hoang Trieu
Speaking to a reporter from Nguoi Lao Dong newspaper on the afternoon of August 2nd about the current developments of the VN-Index, Mr. Phan Dung Khanh, Director of Investment Consulting at Maybank Securities Company, said that liquidity (cash flow) is one of the factors causing the market's negative performance at present. Foreign investors have been selling net for many years, and the cash flow from domestic individual investors has also "disappeared." The continuous decline in cash flow month after month indicates a negative market outlook, especially after failing to break through the 1,300-point mark in early July.
"Foreign investors have not stopped their net selling trend as foreign capital shifts to markets with more attractive returns such as the US and Europe. The US Federal Reserve (FED) is expected to cut interest rates in September, but information from the latest meeting shows that the agency is expressing 'uncertainty,' causing investors to worry about the timing of the first interest rate cut."
"The sell-off in international stocks, with their sharp declines, is further impacting the VN-Index. Domestic investment channels such as bank deposits and gold are also becoming more attractive… The flow of money into stocks is gradually weakening, so the short-term outlook is not very bright," Mr. Khanh analyzed.
Will the VN-Index break below 1,200 points? According to expert Phan Dung Khanh, the sharp price drop coupled with low liquidity indicates weak buying demand at the bottom, a negative development. Currently, the 1,180-1,200 point range is the medium-term support zone for the market, so it is necessary to observe developments during the trading session and in the coming days.
Mr. Vo Kim Phung, Head of Analysis Department at BETA Securities Company, also said that today is the last trading session of the week, and the market is likely to experience strong fluctuations. In this context, investors should cautiously restructure their investment portfolios and consider averaging down.
"It's necessary to carefully review the stocks currently held, sell off those with high risk or no longer potential, and accumulate more in those with better prospects. Market corrections can create buying opportunities for risk-averse investors," Mr. Phung said.
Source: https://nld.com.vn/chung-khoan-co-the-thung-1200-diem-nha-dau-tu-chan-nan-196240802125550039.htm
