US and European stock markets ended last week on a downward trend, and the subsequent sell-off in major Asian markets this morning has caused concern for Vietnamese stock investors.
A notable example is Japan’s Nikkei 225 index, which plummeted by nearly 5.6% shortly after opening, also impacting domestic investor sentiment. In just about a month, the Nikkei 225 has dropped by 15%, and the Nasdaq has fallen by 10% from its peak…
As a result, the market experienced heavy selling pressure as soon as it opened for trading at 9 a.m. The downward trend intensified, and by around 9:30 a.m., the VN-Index had lost more than 20 points to fall to 1,215 points, while the HNX-Index also decreased by 2.66 points to 228 points. The HoSE was flooded with red, with a series of stocks falling sharply by 2-3% just a few minutes after trading began. A few names, such as LPB, GEX, FPT, and AGG, managed to stay in the green.
The market’s decline caught many investors off guard, as hopes for a recovery after last week’s upward turn now seem fragile.
Observing stock forums, many investors who had successfully “bottom-fished” stocks last week were anxious this morning as they saw the market drowning in red. Many stocks plummeted to their floor prices.
The stock market continues to be red-hot at the start of the week
VPS Securities Company believes that the VN-Index has fallen again after the restructuring of ETF funds last week and has returned to the psychological region of around 1,210 points. The fact that foreign investors maintain a Short (reduce) position in the derivatives market and large investor groups (including proprietary trading) continue to trade price differences (arbitrage) indicates that the VN-Index may still be subject to large fluctuations and has not yet confirmed a bottom to move up.
“Investors temporarily prioritize portfolio management and refrain from bottom-fishing, even when capital is not strong enough – especially in stocks with marketability and high leading ability. In the event that the VN-Index shows positive signs of meeting the criteria for bottom formation, it is likely to be a mid-term bottom region,” VPS predicted.
Commenting on this week’s trading, MBS Securities Company stated that the domestic market had “patched” the July bottom with last week’s reversal of global stock markets but still fell for the fourth consecutive week.
According to statistics, liquidity since the beginning of July has been VND 19,368 billion, a decrease of 26.5% compared to June. Moreover, the small liquidity during the VN-Index’s breakthrough bottom is a strong technical signal to observe, indicating that external capital remains cautious.
Investing in a volatile market: Should beginners consider putting money into high-yield bonds for 10-30% yearly profit?
Short-term stock market trading has proven to be a risky venture for many investors, leading to substantial losses. However, there are a few select open funds that have managed to achieve impressive returns, reaching up to 30%.
Bank stocks sold off heavily
Today (2/2), the VN-Index continues to rise, but in a cautious trading atmosphere. It is noteworthy that most banking stocks in the VN30 basket are facing strong selling pressure.
