Stock market faces difficulties again.

Leaders of several securities companies also expressed bewilderment at the developments in the stock market.

After a slight recovery, the domestic stock market faced strong selling pressure at the end of the trading session on November 14th, causing indices and individual stocks to close in the red. The VN-Index recorded a decrease of 14.15 points (-1.14%) and closed at 1,231.89 points, the lowest in the past three months. Red dominated with 284 declining stocks and only 62 rising. Liquidity, although slightly higher than the previous session, remained low at just over 16,100 billion VND.

Foreign investors have continued their net selling streak for the past 10 sessions. The net selling value on the exchange this session reached over 940 billion VND, concentrated on large-cap stocks.

On investment forums and groups, investors expressed disappointment and began searching for answers to why the VN-Index could so easily break through the strong support level of 1,240 points. Previously, securities companies and financial institutions had all suggested that the stock market would benefit from positive macroeconomic information, economic growth, regulations easing restrictions on institutional investor transactions, and the roadmap for upgrading the Vietnamese stock market. Some questioned whether the sell-off pressure at the end of the session was due to companies selling off shares held in investors' accounts to settle debts.

Speaking with reporters from the Nguoi Lao Dong newspaper, leaders of several securities companies also expressed their bewilderment at the developments in the stock market. This is because, despite the lack of significant negative news, the VN-Index has continued to decline.

Ms. Tran Khanh Hien, Director of Analysis at MBS Securities Company, believes that several factors are impacting the stock market. These include the rapid increase in the USD/VND exchange rate and the rise in interbank interest rates above 5%, indicating liquidity constraints in the market. However, these factors are not so negative as to cause a sharp drop in the VN-Index like on November 14th.

From a financial expert's perspective, Dr. Dinh The Hien believes the stock market is currently in a downward trend. Since the beginning of the year, the VN-Index has risen from around 1,130 points to around 1,300 points, equivalent to an increase of approximately 15%. This increase is three times higher than the return on a typical savings account, so the current correction is not entirely unexpected.

"There's a paradox: when the VN-Index reached 1,300 points, investors were encouraged to buy or invest in stocks, causing many to suffer losses when the index went down. Meanwhile, a market downturn is actually an opportunity to accumulate stocks," observed Dr. Dinh The Hien.

Source: https://nld.com.vn/chung-khoan-lai-gap-kho-196241114211715294.htm