VN-Index decreased more than 30 points

This morning, the index representing Ho Chi Minh City floor fluctuated around the reference. Corrective pressure began to gradually strengthen from the middle of the morning session and reached its peak when many securities companies called margin after lunch break. The index at one point dropped 48 points, breaching the psychological mark of 1,700 points.

In the last 15 minutes of the session, demand reappeared, helping the decreasing margin narrow significantly. VN-Index closed at 1,710 points, down more than 30 points compared to the reference. This is the third consecutive decrease, bringing the index to its lowest level in about half a month.

The director of a securities company branch in Ho Chi Minh City said today’s strong selling was mainly due to margin calls with both individual and institutional customers. According to this person, securities companies have asked customers to pay money to maintain deposit rates in the context of many banking, real estate and oil and gas codes continuously adjusting. This is likely to lead to investors having to sell other codes in the portfolio to get money to deposit.

According to the analysis group of Ho Chi Minh City Securities Company (HSC), if the pressure to sell goods increases, especially through margin calls or forced mortgage release, the market will have difficulty absorbing the sales volume. At that time, a longer and stronger correction can be triggered.

HSC believes that the Vietnamese stock market is in one of the most difficult periods in the past 5 years. The index has adjusted about 12% when excluding a number of stocks with large and dominant proportions. Liquidity is almost exhausted, investor confidence is low and initial public offerings (IPOs) are facing difficulties because stocks just listed on the floor have plummeted.

“Many investors are still standing on the sidelines, wanting to wait for a deeper adjustment before disbursing. This limits demand at the current price range, leading to the possibility of the market being more vulnerable to domestic and foreign risks,” the group wrote.

The pressure to sell goods fiercely in the first session of the week caused Ho Chi Minh City floor to be in the red with nearly 270 codes falling, 6 times more than the gainers. The large-cap basket had 26 codes closing below reference, of which GVR of Vietnam Rubber Industry Group hit the floor price.

By industry, banking stocks were sold the most. VPB led the decline with more than 6%, down to 21,550 VND. Other pillar codes such as VCB, BID, LPB, ACB… decreased by more than 3%.

All oil and gas stocks today reversed from increasing to decreasing. PVT and PLX ranked first in adjusted margin, at 3.1% and 2.9%, respectively.

Real estate groups also faced massive selling pressure. VRE, KDH, SCR and NLG all decreased by about 4-5%. In contrast, Vingroup’s VIC was a rare pillar of support with an increase of 0.4%, contributing nearly 2 points to the index.

Investors sold strongly, pushing market liquidity to more than VND 18,500 billion, an increase of about VND 4,000 billion compared to last week. Foreign investors continued to sell goods for 7 consecutive sessions.