Vietnam's stock market rebounded in the trading session on August 6 after plummeting $8 billion in the previous session.

The VN-Index in the session on August 6 increased by 22.21 points (equivalent to an increase of 1.87%) after decreasing by nearly 50 points in the previous session.

Most of the pillar stocks increased slightly again. 28 out of 30 VN30 codes increased, only Techcombank (TCB) of billionaire Ho Hung Anh and Vingroup (VIC) of billionaire Pham Nhat Vuong remained unchanged, at 22,300 VND/share and 41,300 VND/share, respectively.

Most banking and real estate stocks rose again in the afternoon session.

BIDV Bank (BID) shares increased by 650 VND to 46,750 VND/share; Vietinbank (CTG) increased by 400 VND to 30,550 VND/share; HDBank (HDB) of female billionaire Nguyen Thi Phuong Thao increased by 350 VND to 24,850 VND/share. MBBank (MBB) increased by 450 VND to 23,400 VND/share...

Most stocks recovered but failed to regain what was lost in the previous rare decline (August 5).

In the afternoon session of August 6, the VN-Index increased quite quickly again, but liquidity was not high. Investors tended to reduce supply and reduce selling when the stock market recovered, while demand increased.

However, demand was not too strong, the market in general only regained about 50% of what was lost in the previous session.

Besides, some stocks with bad news are still under selling pressure, such as QCG of Quoc Cuong Gia Lai Joint Stock Company owned by Mr. Nguyen Quoc Cuong (commonly known as Cuong Dola).

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Stocks recover after a steep decline. Photo: Tung Doan

After 11 consecutive sessions of decline, including 7 floor sessions and 4 deep sessions, QCG stock bounced back to the ceiling on July 29 after receiving information that Mr. Nguyen Quoc Cuong replaced his mother (Ms. Nguyen Thi Nhu Loan is currently under temporary detention) as CEO of Quoc Cuong Gia Lai. QCG had 2 more sessions of increase and then turned sharply down, until August 6, QCG recorded 4 consecutive sessions and dropped to a new low of 5,870 VND/share.

Compared to the price of 14,400 VND/share recorded on June 27, QCG shares have decreased by more than 59%. And compared to the price of 18,000 VND/share in May, QCG has decreased by 67.4%. The specter of price reduction still haunts the shares of Mr. Cuong Dola's company even though the stock market is recovering.

Mr. Nguyen Quoc Cuong’s appointment to the hot seat at Quoc Cuong Gia Lai seems to have not reassured investors in the context that the authorities are continuing to investigate the case of buying and selling public land related to this enterprise. This was also the time when Mr. Nguyen Quoc Cuong was a member of the Board of Directors and Deputy General Director of QCG.

QCG is also currently having to accelerate asset sales to raise enough VND2,880 billion to pay Van Thinh Phat to take back the Phuoc Kien project. Some investors are concerned that the investigation into Ms. Loan is ongoing, so more time is needed to assess the company's prospects. In addition, the real estate sector in general still has many difficulties and problems that need to be resolved.

Vietnam's stock market rebounded on August 6 amid a rebound in Asian stocks after a previous plunge. The Nikkei 225 index rose more than 10% after plunging about 20% in the previous two sessions.

Although Vietnam's stock market has recovered, concerns remain. Foreign investors are still selling heavily, net selling more than VND350 billion on HOSE. Liquidity remains low. Many investors are still worried about instability in the global financial market as well as geopolitical tensions in the Middle East as Israel and Iran are on the brink of war.

Looking at the big picture, there are still many domestic and international developments that can greatly affect the Vietnamese stock market.

However, some experts still have a positive view.

Mr. Barry Weisblatt David - Director of VNDirect Securities Analysis Department said that the sessions of sharp market decline create good buying opportunities. According to Mr. David, from now until the end of the year, the VN-Index can reach 1,350-1,400 points, depending on many factors.

These are the level of interest rate cuts by the US Federal Reserve (Fed), the weakening of the USD, and Vietnam's export and credit growth. If the Fed cuts interest rates by 25 basis points, Vietnam's exports will increase by 10-12%, credit will increase by 14% and listed companies' profits will increase by 18%. The VN-Index will close at 1,350 points with a trailing P/E (price/profit for the last 4 quarters) of 14.2 times.

But the Fed can also cut interest rates by 50 basis points, Vietnam's credit growth will reach more than 14%. Exchange rate pressure will ease, the State Bank can increase money injection. VN-Index can rise above 1,400 points.

Stocks plunged 50 points, shaking the market by 200 billion USD. Selling pressure increased sharply from the morning session of August 5, with the number of stocks decreasing in price overwhelmingly and widely. In the session of August 5, all 30 pillar stocks in the VN30 group decreased in price.