VN-Index dropped the most in 5 months

After the first few minutes, ATO moved sideways at reference, the HoSE index was dyed red all day. In the first half of the morning, liquidity maintained at a low level like the previous session, causing stocks to not retreat too deeply. After 11am, the selling pressure increased, pushing this index closer to the 1,260 point frame.

Sell ​​orders were pushed up continuously in the afternoon, making it difficult for this index to improve. After the ATC session, VN-Index returned below 1,255 points, down more than 15 points compared to the previous session. This is the strongest correction of the market in the past 5 months.

On the entire HoSE floor, there were 353 stocks that decreased, 5 times more than the 69 stocks that increased in price. Among them, insurance, securities, retail and industrial groups had the sharpest decline in industry indexes.

However, due to their high proportion in market capitalization, banking stocks are the group with the largest presence at the top causing the most negative impact on the VN-Index. In which TCB leads, followed by CTG, VPB, MBB, ACB, LPB and HDB.

The market was also greatly affected by the VN30 basket when there were 24 codes going backwards, causing the representative index to fall nearly 23 points, the strongest since the beginning of August. The red color also spread to the Hanoi and UPCoM markets.

During the session, VN-Index dropped sharply, liquidity increased by nearly 3,000 billion to about 13,750 billion VND. However, this is still not a high number, on par with the average for many past months.

Foreign investors also accelerated the trend of selling goods for the third consecutive session. Today, foreign investors net sold 734 billion VND, 7.6 times higher than the previous session. FPT continues to become the focus, in addition to CTG.

Share with VnExpressMr. Pham Hoang An – Head of Analysis Department of Thanh Cong Securities (TCSC), said: “The market today dropped sharply, focusing on large stocks. The main reason may come from foreign funds. pulled the NAV (net asset value) at the end of last year and the market is now returning the point.”

Considering the current macro context, the continuously increasing exchange rate forces the State Bank to sell USD to stabilize. Estimated sales volume in December is nearly 3 billion USD. Selling foreign currency will cause the money supply to shrink and the interest rate environment is at risk of increasing in the future. According to experts, the macro context is not good but the market at the end of 2024 will still increase strongly, especially in banking codes that funds hold a lot of (CTG, STB…).

By 2025, the loss of motivation to maintain performance will cause buying momentum to slow down, combined with the DXY dollar strength index just rising to the 109 area, increasing the risk of exchange rates continuing to rise in the future. This causes institutional investors to lower their proportion, evidence of this is the number of foreign investors returning to strong net selling in the last 3 sessions.