Stocks on fire: 2.6 billion USD changed hands, VN-Index plummeted

The stock market recorded its first notable decline since gaining more than 550 points in nearly 6 months, from 1,100 points in April to over 1,650 points.

The Vietnamese stock market experienced a sharp decline on August 22, with the VN-Index falling 60 points at one point before closing the session down 42.53 points (-2.52%) to 1,645 points.

The selling pressure to take profits increased sharply, causing most hot stocks to fall sharply. However, demand was also very large, thereby pulling liquidity to nearly 62.3 trillion VND on the HoSE and about 6.4 trillion VND on the HNX and Upcom.

Selling pressure increased as the VN-Index headed towards the 1,700-point threshold and foreign investors put great pressure on the market by net selling for the 12th consecutive session with a value of more than VND1,500 billion. Among them, there were codes that were sold very strongly such as HPG of Hoa Phat Group with nearly 40 million units net sold, equivalent to more than a thousand billion VND. In more than 2 weeks, foreign investors sold more than VND17,000 billion.

On August 22, some codes were sold heavily by foreign investors, such asSHB of Saigon - Hanoi Bank. Foreign investors sold more than 8.6 million SHB shares, while buying more than 5.5 million units. SHB shares have nearly doubled in 6 weeks, from about VND11,000/share in early July to over VND20,000/share on August 15 - a historical peak.

SHB is one of the stocks that has increased rapidly during the stock market boom in the past few months. In the past month, banking stocks have been the focus of the stock market. In particular, SHB is a highlight with very high liquidity, up to hundreds of millions of units transferred/session (a record of nearly 250 million shares/session). With a nearly double increase in a month and a half, SHB's capitalization has reached nearly 86.6 trillion VND (equivalent to about 3.3 billion USD).

In the trading session on August 22, SHB shares hit the floor, losing 1,250 VND (-6.76%) to 17,250 VND/share.

The stock market had a strong decline. Photo: HH

Many other hot stocks also fell sharply. VPB shares of Vietnam Prosperity Joint Stock Commercial Bank - VPBank on August 22 dropped to the floor price of VND2,700 to VND35,950/share. VPB shares also doubled from VND18,000 at the end of June to VND38,650/share on August 21.

VPBank recorded a sharp increase in second-quarter profit thanks to an increase in net interest income, a decrease in provision expenses, and an increase in profits from trading securities. Consolidated profit reached over VND4,937 billion, up 35.6% over the same period last year.

GVR shares also hit the floor on August 22. Vingroup (VIC) fell 900 VND to 124,100 VND/share. Vinhomes (VHM) fell 1,700 VND to 98,100 VND/share.

On the contrary, some bank codes increased in price such as: VIB, VCB, BID.

In the early afternoon, at one point, the VN-Index lost nearly 60 points. The red color spread widely, pushing more than 60 codes to the floor.

Many other leading stocks such as HPG, FPT, GAS, MSN, MWG, VJC also fell sharply. HPG fell 1,400 VND to 26,000 VND/share. FPT fell 2,700 VND to 99,000 VND/share. Masan (MSN) fell 3,300 VND to 81,000 VND/share. Red covered the securities, insurance, oil and gas groups...

Many experts from securities companies believe that after a long period of increase, profit-taking pressure is inevitable. The VN-Index increased by more than 550 points but there has not been a single strong decrease.

In the past, there were profit-taking waves that pulled the VN-Index down more than 60 points, but the stock market still went up afterwards.

According to MBS, the current trailing P/E of VN-Index has reached its highest level in the past 3 years and is equivalent to the average P/E of 5 years. However, it is still lower than in 2021 when VN-Index was at 1,500 points.

According to technical analysis, VN-Index is currently supported at the 1,566 - 1,588 point range.

Despite the sharp decline, cash flow is still pouring into the stock market strongly. Interest rates are low, expectations of high profit growth of listed companies, and the possibility of the stock market being upgraded... continue to be factors supporting the market.

VN-Index breaks 9-session winning streak: Stocks still attract billions of dollars in cash flow? The stock market has just experienced an unprecedentedly exciting week, VN-Index continuously set new peaks, liquidity skyrocketed. The banking group shined but also faced selling pressure at the end of the week.

Source: https://vietnamnet.vn/chung-khoan-do-lua-2-6-ty-usd-sang-tay-vn-index-lao-doc-manh-2435003.html