The Vietnamese stock market witnessed a trading session likened to "Black Friday" on December 12th, as a wave of sell-offs spread across almost all stock groups. The electronic trading board was covered in red, with numerous stocks plummeting to their lower limit by the end of the session, creating a pessimistic sentiment in the market.
Statistics show that the entire market saw over 600 stocks decline in price, while the number of stocks increasing was less than 200. Corrections of 3%-4% were widespread, with many large-cap stocks even hitting their lower limit, indicating intense and widespread selling pressure.
At the close of trading on December 12, the VN-Index lost 52 points, equivalent to a 3.06% decrease, falling to 1,646 points and officially losing the 1,650-point support level. With this sharp decline, Vietnamese stocks became the worst-performing market in Asia that day, completely contrary to the relatively stable trend of many regional markets.
The index's decline was heavily influenced by blue-chip stocks. Stocks related to Vingroup, including VHM, VIC, and VPL, weakened simultaneously, putting significant pressure on the VN-Index. In addition, the banking sector also experienced a correction, with many large-cap stocks such as VPB, TCB, MBB, and VCB falling sharply, contributing to the overall market downturn.
Notably, this marks the fourth consecutive day of decline for the VN-Index, after the index repeatedly attempted to break through its peak but failed. However, bargain hunting remains quite cautious. Market liquidity has not surged, with the value of matched orders on the HoSE exchange hovering around 22,000 billion VND, indicating that large capital flows are still observing from the sidelines.
Pressure from foreign investors continued, with them net selling nearly 600 billion VND on the HoSE. However, compared to previous sessions, the pace of net selling showed signs of slowing down. The December 12th session also marked a streak of six consecutive net selling sessions by foreign investors, thus continuing to put pressure on market sentiment.
The unexpected turn of events in this trading session quickly became a hot topic of discussion on investment forums. Many investors sought the reasons for the market's sharpest decline since mid-October, especially given the absence of any sudden negative macroeconomic news.
A series of large-cap and real estate stocks plummeted to their lower limit at the end of trading on December 12.
A reporter from Nguoi Lao Dong Newspaper had a quick exchange with Mr. Truong Hien Phuong, Senior Director of KIS Vietnam Securities Company, about the unexpected developments in today's trading session, as well as the strategy for investors in the coming sessions.
- Reporter: Many investors are wondering why the VN-Index still lost more than 50 points when there were no particularly significant factors impacting the market?
+ Mr. Truong Hien Phuong : If we consider the exceptional factors, personally, I don't see any particularly sudden cause for today's developments. I believe it stems from several reasons: The market has been trading sideways for about two weeks, but there hasn't been enough strong news to drive it up, and cautious investors are staying on the sidelines. Smart money hasn't returned yet, not enough to push the market up further.
Technically, after a period of sideways movement, the market usually experiences a reversal – potentially rising if the news is positive, or falling if the news is negative. But in today's session, strong selling pressure at the end of the day caused a massive sell-off.
A notable factor is that the Vingroup group of stocks has officially "broken the trend". For the past two months, when the VN-Index hovered around 1,600-1,800 points, the index was largely supported by this group. If Vingroup is excluded, the VN-Index is actually only around 1,500 points. With the market lacking supporting information, coupled with a prolonged sideways movement, weakened investor sentiment has led to concerns that the index may continue to fall, resulting in selling pressure.
Furthermore, foreign investors continued to sell heavily, focusing on large-cap stocks, making domestic investors – who are already fragile – even more cautious amidst numerous unfavorable factors.
In addition, there were signs of large-scale selling pressure. The strong selling pressure was concentrated at the end of the session, with large volumes and pushing many stocks to their lower limit – this did not come from retail investors but from institutions or large investors.
- Given these developments, what do you think the market will be like in the coming days?
+ There is a possibility that the market will continue to decline in the next few sessions. When the market falls sharply at the end of a session, it often leads to margin calls (requests to deposit additional funds) in the following 1-2 sessions. Some investors will be forced to sell due to lack of funds to make the additional deposit, creating further technical downward momentum. However, this decline does not stem from macroeconomic risks, nor from problems with businesses or the economy , but mainly from technical and psychological factors.
Therefore, if the market continues to fall, the downward momentum will weaken as margin calls subside. This is more likely a short-term correction than a major risk.
- Many investors are losing money as stocks have fallen by 10-30% over the past few weeks. What is the appropriate strategy at this time?
For investors holding good stocks, I believe they shouldn't sell at any cost at this time. In fact, over the past 2-3 weeks, most stocks have fallen by 5-30%. The rallies only lasted 1-2 sessions before falling even more sharply, so most investors are currently losing money. Even so, there's no reason to panic sell, especially since the correction is purely technical.
Currently, investors holding cash can take advantage of the opportunity to buy good stocks at deep discounts – at price levels that were previously unaffordable. Investors with underperforming portfolios can also restructure, selling stocks that no longer have potential and shifting to stocks with strong fundamentals, high profit margins, or unique stories.
When the market stabilizes and money flows back in, good stocks will recover faster and stronger than weaker ones.
Source: https://nld.com.vn/chuyen-gia-ly-giai-nguyen-nhan-chung-khoan-viet-nam-sale-off-52-diem-ngay-12-12-196251212163146259.htm
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