In yesterday's session, the market was supported by blue chips after positive second quarter business results, along with strong bottom-fishing cash flow into mid- and small-cap stocks. Overall for July, the VN-Index only edged up 6.19 points, equivalent to +0.49%.

However, the market is never easy to predict. In today's trading session, August 1, selling pressure suddenly increased across the board. Almost all industry groups had a negative impact on the index, including oil and gas stocks that were expected to benefit from geopolitical tensions in the Middle East. The banking group, despite receiving positive information from second-quarter business results, was also sold heavily.

The selling pressure in the afternoon session caused the VN-Index to evaporate nearly 30 points at one point. However, the fact that domestic investors “flee” was an opportunity for foreign investors to rush to buy stocks, helping the index pull back its points at the closing time of the session.

At the end of today's session on August 1, VN-Index decreased by 24.55 points (1.89%) to approximately 1,227 points. The entire HoSE floor had 423 stocks decreasing (34 stocks hitting the floor), 45 stocks increasing and 38 stocks remaining unchanged. Most industry groups decreased, of which telecommunications, chemicals, securities, real estate... decreased the most.

In the VN30 basket, there were 28 stocks that decreased in points, 2 rare stocks that increased in price and became bright spots in the market: VCB of Vietcombank, SSB of SeaBank. The rest were mostly in red with active selling overwhelming. In today's volatile session, foreign investors tended to buy and sell quite balanced in value. In which, VNM, MWG, MSN, DBC... were the stocks that were strongly net bought.

Despite the sharp loss, market liquidity improved significantly with nearly 900 million shares matched, equivalent to a transaction value of VND 21,400 billion.

The negative reaction of the stock market today has inevitably surprised investors. Because macroeconomic factors are very supportive of the market. Today, more detailed data on FDI was also announced. Accordingly, the manufacturing and processing sector led the attraction of registered FDI capital in the first 7 months of the year, reaching 12.65 billion USD (up 15.7% over the same period). A notable development is the rise of the real estate and transportation sectors into the top 5 attracting FDI capital with growth rates of 87.1% and 112.9%, respectively.

Internationally, the US stock market also increased strongly in the trading session on Wednesday (July 31), after the US Federal Reserve (Fed) kept interest rates unchanged but was likely to lower interest rates this September.

Many experts believe that the market sentiment is currently quite vulnerable when the market recovery speed is weak. In addition, high margin debt is always a "cornerstone" that weighs heavily when the market adjusts. Many investors are easily worried about the "avalanche" effect appearing, in the context of high margin debt, the pressure to supplement collateral increases, so when there are signs of increased selling pressure, the sell-off mentality also appears.

Although VN-Index fluctuated narrowly in July, the month waiting for information on Q2 business results, the market was strongly differentiated and less positive, most stocks were under strong correction pressure and recovered poorly, while only a few stocks accumulated well and increased in price. In the short term, the trend of VN-Index is still less positive when it cannot maintain the trend line supporting short- and medium-term growth.