Investors cry again, fearing that stocks will continue to fall

(NLDO) – VN-Index decreased for the third consecutive week, losing about 150 points from its historical peak, causing heavy losses in the accounts of many investors.

VN-Index decreased for the third consecutive week

The Vietnamese stock market closed the last trading week of October with red covering the market. The VN-Index closed the session on October 31 at 1,639 points, down nearly 30 points compared to the previous session, marking the third consecutive week of decline since the index peaked around 1,800 points.

The VN30 index – representing large-cap stocks – also lost 3.05%, falling to 1,885 points, below the psychological resistance level of 1,900 points.

Overall, the market is accumulating in a narrow range in October, around the support level of 1,620 points, but correction pressure is still heavy in many sectors after a prolonged period of overheating. Real estate, securities, banking, and retail stocks all fell sharply, making investors more cautious.

Notably, foreign investors continued to maintain a long-term net selling streak. Last week alone, foreign investors withdrew more than VND2,722 billion on the HOSE, bringing the total number of consecutive weeks of net selling to 15. This move makes it difficult for domestic demand to support the market in the short term.

On investment forums, many investors expressed frustration and anxiety as many stocks fell 15-20% from their peak, while those using margin (borrowed capital) suffered heavier losses as the general index lost about 150 points.

The stock market disappointed investors in October.

“I am holding SSI and VIX stocks, losing 20-30% due to buying at the peak. Some friends using margin have lost up to 50-60%. It is too late to sell now, but if I keep them, I don’t know when they will “return to shore”. Many stocks have hit a 3-month bottom, falling to the lowest level in the past 5 months,” said Manh Hoang, an investor in Ho Chi Minh City.

It is worth noting that this sharp decline occurred in the context of the market receiving a lot of positive information, including the event of Vietnam being officially upgraded from a frontier market to an emerging market, a factor that was expected to create strong support for the VN-Index. However, the market reaction went against expectations when speculative money quickly withdrew, while medium and long-term buying power was not strong enough to change the trend.

VN-Index likely to lose 1,600 point mark

According to a report by SHS Securities Company, after reaching a peak around 1,800 points, the VN-Index has ended its long-term growth cycle from April 2025 to now and is entering a correction - accumulation phase with a narrow amplitude, clearly differentiated between industry groups. SHS commented that although short-term risks still exist, opportunities are opening up for patient investors, especially in stocks that have been deeply adjusted and have good fundamentals, when stock prices have returned to a more attractive zone.

Foreign investors net sold for 15 consecutive weeks. Source: SHS

Mr. Nguyen Tan Phong, analyst at Pinetree Securities Company, analyzed that the market experienced a less optimistic period at the end of October. Despite the fact that last week there was a lot of supportive information such as Vietnam reaching a framework agreement on reciprocal tax with the US at the level of 0-20%, the US-China trade tension cooling down, the US Federal Reserve (FED) cutting interest rates by 0.25% or positive business results of enterprises in the third quarter... Even the VN-Index unexpectedly went against the upward trend of world stocks.

"The decline of VN-Index mainly comes from the adjustment of hot pillar stocks such as Vingroup, Gelex or banking stocks. The adjustment of Vingroup is returning all the points that pulled VN-Index in early October, but the cash flow is shifting to other groups. The market trend next week depends on the fluctuations of Vingroup stocks, although a 20-30% decrease is normal after having increased 4 times since the beginning of the year," said Mr. Phong.

Technically, the VN-Index is likely to lose the 1,600-point mark. In the scenario that Vingroup stocks stop falling next week, this will be a good signal for the general market. This will be a good opportunity for investors to restructure their portfolios and wait to disburse new leading stocks. Cash flow will shift from hot stocks to stocks that have been forgotten in recent times.

Source: https://nld.com.vn/lo-chung-khoan-giam-tiep-nha-dau-tu-lai-khoc-rong-196251102011139351.htm