Selling pressure increased sharply, VN-Index suddenly dropped 20 points with only half an hour left until the trading session ended. However, the stock market's decline gradually decreased afterwards.
The entire market in the first session of November had nearly 500 stocks decreasing in points - Photo: QUANG DINH
Stocks retreat to 1,250 points
VN-Index opened the first trading session of November in a slight red and struggled below the reference. By the end of the morning session, active selling pressure was low but active demand also weakened, causing the index to still lose 4 points.
In the afternoon session, the market continued to trade relatively sideways. After 2 p.m., red dominated and covered a wide area. The entire market had nearly 500 stocks adjusted.
The VN-Index even dropped 20 points, with less than 30 minutes left before the market closes. A series of codes in the VN30 were sold at floor prices, causing the index to "free fall".
But then the decline slowed down as these codes gradually turned back to red instead of blue. At the end of the session, the index representing the Ho Chi Minh City Stock Exchange lost nearly 10 points, falling further to the 1,254 point mark.
The total transaction value of the entire market was 16,000 billion VND, partly reflecting the caution in trading of investors.
In summary, red today dominated across all sectors. Credit institution stocks lost nearly 1%, while real estate stocks lost 0.6%.
The retail distribution industry and the telecommunications group suffered the strongest downward pressure today, down 3.8% and 4.1% respectively...
On the Ho Chi Minh City Stock Exchange, 289 stocks were in red, while only 86 stocks remained green. In the VN30 group, 25 stocks were subject to adjustment.
Speaking to Tuoi Tre Online , Mr. Tran Truong Manh Hieu - Head of Strategy Analysis at KIS Vietnam Securities - said that today is the last session for funds to restructure their portfolios. In these sessions, there will usually be price fluctuations near the end of the session.
"If you observe, you will see that at around 2:30 p.m., many stocks hit their floor prices. But basically, there was no unusual information or fluctuations in the market. After that, the stocks recovered. The market's decline has gradually slowed down," Mr. Hieu analyzed.
At some stock groups, many brokers also explained to customers that today's session was due to the restructuring of portfolios from funds, so there were some fluctuations right at the beginning of ATC.
ATC orders take place in the last 15 minutes of the trading session, from 14:30 to 14:45, but have the greatest effect, determining the reference price of the next session.
Foreign investors continue to sell net after Fed cuts interest rates
Although foreign investors were expected to reduce their net selling after the Fed lowered interest rates, this did not happen. In October, they continued to net sell about VND14,000 billion in the Vietnamese stock market.
In the first session of November, foreign investors net sold more than 700 billion VND. The top stocks that this group "dumped" the most were MSN of Masan (nearly 250 billion VND), VHM of Vinhomes (160 billion VND), FPT (37 billion VND)...
Ms. Tran Thi Khanh Hien, director of analysis at MB Securities (MBS), said that we should not expect foreign capital to rush back to Vietnam after interest rates reverse. For now, we only hope that the foreign sell-off will slow down to improve market sentiment.
According to Ms. Hien, the main problem to explain why foreign investors withdraw capital or have not yet come to the Vietnamese market is because there are no new, attractive products.
For example, many foreign investors are favoring "hot trend" stocks such as technology, but this group is very absent from the Vietnamese market.
Not to mention that recently the exchange rate pressure has returned as the USD has strengthened significantly. The State Bank has also had to introduce many measures to control the exchange rate, including withdrawing money through the treasury bill channel. This development has had a significant impact on the stock market sentiment.
However, Ms. Hien believes that the Vietnamese stock market still has bright spots to support capital flows such as market valuations being in an attractive area for investment activities, the Vietnamese economy recovering more firmly, high GDP growth, low interest rates, etc.
Source: https://tuoitre.vn/chung-khoan-bat-ngo-roi-tu-do-cuoi-phien-ngay-dau-thang-11-20241101151811638.htm
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