Stocks plunged to historic lows

VHO - The Vietnamese stock market has just experienced one of its most remarkable trading sessions when the VN-Index fell by 94.76 points, equivalent to 5.47%. This record absolute drop not only broke a series of important supports but also pushed the index to its lowest level in the past month, leaving many questions about the market's recovery prospects.

VN-Index and VN30 charts at the end of the session on October 20

Right from the beginning of the session, the whole market was covered in red with a common decrease of 15-25 points. However, the selling pressure really exploded about an hour before the end of the session when investors rushed to sell.

In less than an hour, the VN-Index lost nearly 83 points and officially broke the 1,650-point mark. By the end of the session, the index closed at 1,636 points, marking the largest drop ever. In percentage terms, this was also the deepest drop in the past half year.

The decline was not limited to the main indices. The VN30 index, representing large-cap stocks, also lost 106 points to 1,870 points. On the Ho Chi Minh City Stock Exchange, 325 stocks closed at a loss, while only 33 stocks increased.

Notably, 108 stocks hit the floor, with many stocks falling into a state of having no buy orders. All 30 stocks in the VN30 basket fell, in which many pillar stocks such as HPG, SSI, HDB, MSN,SHB , STB and VPB lost their entire trading range.

Real estate stocks suffered the strongest selling pressure after the Government Inspectorate 's conclusion on corporate bond issuance. Novaland's NVL shares hit the floor from the beginning of the session and remained there until the close with a surplus of nearly 19 million units. Notably, four stocks belonging to Vingroup, which have been considered the pillars of the market in recent times, could not avoid the decline. VRE and VPL hit the floor, while VIC and VHM fell 4.5% and 6.9%, respectively.

The total trading value of the entire market reached over VND53,000 billion, a sharp increase compared to the session at the end of last week, in which the group of large-cap stocks contributed over VND30,000 billion. There were five codes recording liquidity of over VND2,000 billion including SSI, HPG, SHB, MSN and GEX. Foreign investors net sold nearly VND2,000 billion, with VND under the strongest selling pressure when foreign investors sold over 6 million shares.

According to Ms. Tran Thi Hong Nhung, Deputy Director of Analysis and Investment Consulting at Guotai Junan Securities Company (Vietnam), the strong correction session reflects investors' cautious psychology in the face of unfavorable information.

Domestically, the Government Inspectorate’s conclusion on corporate bond issuance has raised concerns about the rectification of violations at some real estate corporations. In the global market, the bankruptcy of auto parts manufacturer First Brands has increased concerns about the risk of chain breakdown. Ms. Nhung predicted that the VN-Index could continue to decline in the next session.

However, the analysis team from Vietcap Securities Company believes that the support zone of 1,560-1,620 points could be the stopping point for the current correction. This is the range of the index's fluctuations from the beginning of August until before the information about upgrading the stock market was announced, so the possibility of the index recovering after reaching these levels is quite high.

Source: https://baovanhoa.vn/kinh-te/chung-khoan-lao-doc-lich-su-176288.html