Stock Market Update for August 22: Stocks Set for Volatile Session

VN-Index opened on August 21 with an 11-point surge, propelled by robust demand for bank stocks. The upward momentum was sustained and expanded as money flowed into stocks such as TPB, MSB, STB, VIB, and OCB, with many reaching the ceiling price. However, the market also exhibited polarization, with the number of declining stocks (194) surpassing rising ones (119), indicating uneven capital distribution.

In the afternoon session, the VN-Index maintained its positive trajectory thanks to the banking sector’s resilience. However, profit-taking pressures at higher levels narrowed the gains. A bright spot emerged in the latter half as strong buying interest resurfaced in large-cap stocks like MWG and FPT, coupled with continued strength in banking stocks, propelling the VN-Index higher.

At the close, the VN-Index settled at 1,688 points, marking a solid gain of 23 points or 1.42%. Foreign investors continued heavy selling, offloading stocks worth 2.416 trillion VND, particularly in VPB, HPG, and CTG, exerting downward pressure on the market.

VCBS, the Investment Banking Division of Vietcombank, observes that money flow is becoming more polarized, concentrating on large-cap stocks and specific sectors, notably banking.

This information may lead some investors to anticipate heightened volatility in the next session as profit-taking pressures could intensify at higher levels.

Meanwhile, other brokerages predict unexpected developments in the market on August 22, especially regarding large-cap and highly liquid stocks. Investors are advised to closely monitor resistance and support levels to make informed trading decisions.

Nevertheless, VCBS recommends continuing to hold stocks with stable upward trends, absent strong selling pressure. Investors are also encouraged to selectively buy stocks that successfully break through resistance for short-term trading opportunities.