Vietnam stock market fluctuates strongly and liquidity record on August 5

The VN-Index once reached its all-time high of 1,584.98 points, up nearly 57 points from the reference point at the beginning of the day. However, after 14 hours, the selling pressure to take profits at high prices suddenly increased, causing the market to plummet. A series of pillar stocks such as banks, real estate, and securities turned sharply down, pulling the index below the reference point, losing more than 9 points in a short time, surprising investors.

However, the strong bottom-fishing demand that was immediately activated helped the market recover impressively and close the session with positive green. The VN-Index closed at 1,547.15 points, up 18.96 points from the previous day, somewhat reassuring investors after the unexpected decline.

This trading session was not only impressive because of its unpredictable developments but also because of its record liquidity. HoSE recorded more than 2.77 billion shares changing hands, with a value of nearly VND75,000 billion. The total transaction value on all three exchanges reached VND82,500 billion, or about USD3 billion - a rare figure in the history of the Vietnamese stock market.

Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Dinh Minh Tri, Director of individual customer analysis at Mirae Asset Securities Company, commented that this was an unusual trading session, reflecting a strong tug-of-war between buyers and sellers.

"The fact that VN-Index has created a "double-peak pattern" in the context of high liquidity is considered a warning signal for an upcoming correction, especially when the market has had 6 consecutive weeks of increase. Besides, August is a period of "no information", when most of the positive expectations about market upgrade or second quarter business results have been reflected in the price" - Mr. Tri analyzed.

Financial expert Phan Dung Khanh also shared a similar view but said that the medium and long-term outlook remains positive thanks to a stable macro foundation, and short-term declines are inevitable after a series of hot growth. Therefore, investors need to be cautious and have appropriate risk prevention strategies.

Source: https://nld.com.vn/chung-khoan-bien-dong-manh-chua-tung-co-196250805212815077.htm