Stock market session October 20: VN-Index cannot maintain the 1,700 point mark, VN30 valuation is still too attractive

Although the VN-Index was always below reference level this morning and decreased by the most at the end of the morning session by over 20 points, at least the index was still maintained above the 1,700 point mark.

However, the selling pressure was too strong in the afternoon session, spreading to all industry groups and most stocks on the floor. After 2:00 p.m., VN-Index officially "broke" the 1,700-point mark and towards the end of the session, the index fell even harder.

At the end of the session, VN-Index decreased by 94.76 points, equivalent to 5.47%. The index retreated to close at 1,636.43 points. If calculated by points, today's session recorded a record decrease to date.

VN-Index performance.

It's no longer just a few stocks pulling points, today's market witnessed pressure on all groups, from large-cap stocks to mid- and small-cap stocks.

VN30 today only had a slight green light from VJC, but by the end of the day, no stocks in the basket increased in price. Even 13 stocks hit the floor, except for VJC, the remaining 29 stocks all decreased by more than 1%, of which 24 stocks decreased by more than 4%. In today's session, VN30 decreased by more than 106 points, equivalent to a decrease of 5.38%, the index closed at 1,870.86 points.

The mid-cap stock group VNMID also decreased by 6.19% while small-cap stocks had a smaller decrease (-4.41%).

To summarize on HoSE, by the end of the day, only 34 codes were still green while 325 codes lost points with 108 codes hitting the floor.

With this sharp decline, the market no longer looks at which industry group has the sharpest decline as stocks of almost all industries are affected. Notably, the index has not been able to maintain the 1,700 point mark while it has just conquered this historical threshold in the session of October 9.

On forums, investors were very surprised with today's trading session in the context of the market not having any negative information that could have a strong impact. However, the possibility of further adjustment was also predicted in advance, at the same time, the market sentiment after the strong adjustment session last weekend was also affected, partly causing the selling force to be stronger.

A noteworthy point is that foreign investors have narrowed their selling momentum during the session. If by 2 pm, the net selling value of foreign investors reached nearly 3,000 billion VND, then immediately after that, when the VN-Index continued to weaken, the selling pressure from the stocks sold became stronger, a part of the cash flow from foreign investors returned to buy stocks, showing a signal of "bottom fishing".

Foreign investors showed signs of buying stocks at the bottom in the second half of the afternoon session on October 20.

This led to the total net selling value of this group today being only 1,962 billion VND, although still very large, the value was still at the same level as last weekend's session. The buying value was even higher, reaching more than 4,566 billion VND while the previous session's buying power was only 3,766 billion VND.

If on HoSE, foreign investors bought 4,566 billion VND and sold 6,528 billion VND in today's session, then on VN30 alone, foreign investors sold more than 4,505 billion VND, while buying 2,900 billion VND. The largest selling volume was recorded from MSN shares when foreign investors net sold more than 655 billion VND.

Today, the order matching value on HoSE increased sharply compared to the previous 3 sessions, reaching more than 53,200 billion VND. Meanwhile, the order matching value on VN30 accounted for more than 30,551 billion VND.

In a comment this morning, Mr. Nguyen The Minh , Director of Analysis of Individual Clients - Yuanta Securities Vietnam Company, shared about the relative valuation level in the market after the adjustment session last weekend.

The relative valuations for the 2014-2025 period show that VN30 is still in the cheap valuation zone. Source: Yuanta

Accordingly, up to now, the VN30 and VN100 stock groups are still the stock groups with low valuations although these indexes have continuously set record peaks in recent times, which is also the main reason why cash flow is still mainly concentrated in the large-cap group.

Source: https://baodautu.vn/chung-khoan-phien-2010-vn-index-khong-giu-duoc-moc-1700-diem-dinh-gia-vn30-van-con-qua-hap-dan-d416885.html