The VN-Index has yet to show signs of bottoming out after breaking below the 1,200 mark.

The domestic stock market today (August 5th) experienced a negative trend, mirroring global fluctuations. In Japan, the Nikkei index just had its worst day in nearly four decades, erasing all gains from the beginning of the year. Meanwhile, in South Korea, the Kospi index temporarily halted trading due to a sharp sell-off. Concerns about a potential US economic recession caused investors to flee and challenged the Fed to quickly cut interest rates to salvage growth.

On the HOSE exchange, the VN-Index closed at 1,188.07 points, a sharp drop of 48.53 points, or 3.92%. Not a single stock in the VN30 basket managed to stay above the reference level. The electronic board was dominated by green (indicating price increases).

Technically, analyst Nguyen Phuong Nga from Vietcombank Securities Company observes that most indicators are trending downwards, and the rising DI- and ADX suggest the market is still under strong selling pressure and has not yet shown signs of bottoming out. The increasing number of margin calls from multiple accounts is also negatively impacting the market. The VN-Index may soon rebound once it reaches the strong support zone around 1,180 points.

Analyst Nguyen Le Nguyen Vi from DSC Securities Company stated that the VN- Index is retreating to the lower boundary of a wide sideways range. With a purely sentiment-driven decline like this, it's difficult to say precisely whether the old support level is truly reliable. If the market stops falling around this level until the end of the week, the 1,170-1,180 point mark will truly become a strong support zone.

"When stocks are sold off like today, intrinsic value reigns supreme, especially large-cap stocks which attract significant capital inflows. Short-term investors should avoid panic selling and proactively reduce their borrowed capital, only holding portfolios purchased with their original capital. Long-term investors should gradually buy as the index declines, prioritizing large-cap and leading stocks," the expert said.

Looking at the broader context of August, the Q2 profit picture for listed companies is gradually becoming complete and showing positive signs. Statistics estimate an increase of approximately 25.6% compared to the same period in 2023 and a 12.8% increase compared to the previous quarter. Experts from Rong Viet Securities Company (VDSC) believe that positive factors supporting the market in the coming period include the likelihood of the FED cutting interest rates at its September meeting, thereby reducing pressure on the exchange rate and the pressure of net foreign investment withdrawals. The macroeconomic economy continues to recover, and export activities are favorable. Policies such as reducing VAT and increasing the basic salary for the public sector could help stimulate consumer demand.

"With profit growth in the second quarter and positive prospects in the coming quarters, the estimated P/E ratio for the VN-Index in 2024 is 11.7 times, relatively attractive as it is lower than the average of 13.7 times over the past five years. Potential investment portfolios in August 2024 will include preferred companies with expected strong business growth in the second half of 2024, reasonable valuations, or those in sectors benefiting from economic support policies," VDSC assessed.

Source: https://laodong.vn/kinh-doanh/vn-index-chua-thay-tin-hieu-cham-day-sau-khi-thung-moc-1200-1376317.ldo