Portrait of the “factors” that caused VN-Index to lose 1,000 points, HoSE market capitalization flew by VND 134,000 billion in the session of October 24

The fact that the largest capitalization stocks of the stock market at the moment like VN30 also reached a dozen stocks that fell to the floor, showing the negativity of today’s session.

Vietnam’s stock market has not been able to stop from the series of sharp declines, after the last session of last week fell to nearly 39 points, VN-Index continued to open the new week in the red color. Investor sentiment became more and more pessimistic and bottom-fishing cash flow showed no sign of entering. As a result, the VN-Index broke through the 1,000 point mark, closing at the triple digits after nearly 2 years. Even considering that the main stock market index was on the verge of falling and “piercing” the 1,000 point mark, the last time was nearly 3 years ago, in November 2019 – the time when COVID started appearing in the world. .

Returning to today’s session on October 24, from large groups of stocks such as real estate, banking and securities to small and medium-cap codes and speculative lines such as “them” FLC, Louis, seafood, textile May.. all recorded the color “green floor” accounting for the majority. As a result, VN-Index closed down 33.67 points (3.3%) to 986.15 points, VN30-Index also dropped 3.63% to 976.88 points. Market breadth skewed completely to the stock holder, statistics on HoSE had up to 430 stocks fell, of which 148 stocks fell to the floor, VN30 group contributed up to 10 names; In total, there were 823 losers in all three exchanges, of which 249 stocks lost all range.

The drop of more than 3% also made VN-Index in the top of the “worst” stock indexes in Asia today, October 11. At the same time, the market capitalization of HoSE was “blown away” by more than 134,000 billion dong after just one session, the remaining value fell to 3,934,048 billion dong. Since the peak in April 2022, HoSE capitalization has “evaporated” more than 2 million billion dong of capitalization.

In terms of contribution, blue-chips real estate Vinhomes (VHM) has become the most negative factor causing VN-Index to drop 3.63 points in the first session of the week. VHM’s market price today fell to the floor 7% to 44,600 VND/share. Another Vingroup stock, VRE, also closed today with a dramatic drop of 6.9% to 22,350 VND/share, thereby contributing nearly 1 point to the VN-Index.

A series of banking codes today also recorded a sharp decrease in amplitude, joining the list of stocks that negatively impacted the market. In which, the biggest factor was BID when it fell to the floor 6.9%, thereby removing 2.84 points from the VN-Index. TCB, CTG, ACB in today’s session also ended with a sharp drop, causing the HoSE to lose 1.4 points, 0.78 points and 0.76 points respectively.

The fact that the largest capitalization stocks of the stock market at the moment like VN30 also reached a dozen stocks that fell to the floor, showing the negativity of today’s session. The top 15 stocks that negatively affected VN-Index in this sharp drop were also stocks such as SAB, VNM, MWG, and GVR, each of which took 1-2 points from the main index of Vietnam’s stock market.

On the other side, the green color glimmered in some stocks such as PGV, HAG, AGG, FRT… helping the market to have support, narrowing a part of the drop. However, the increase was not enough with the strong plunge of the remaining groups of stocks.

In the recent weekly update report, BIDV Securities (BSC) assessed the context of many negative information about businesses, some businesses could not pay the due principal and interest, even sold off their assets. assets to take care of liquidity, etc. cast a dark shadow on the market, despite the 3rd quarter business results which recorded many positive points.

According to BSC, when the market no longer reacts to positive information but only reacts to negative information, the downward pressure is still very large. BSC recommends that investors take advantage of reducing the proportion of the portfolio to a safe level, not in a hurry to catch the bottom and should wait for clearer market signals.

VCBS Securities said that the exchange rate in the free market and the exchange rate at commercial banks continuously increased, showing that the pressure on the exchange rate not only did not decrease but also increased continuously during this period. In addition, the fast and strong interest rate increase trend of the Fed as well as many other central banks in the world is still continuing with a high probability of a 75 point rate hike in early November and another 50 point hike in December, leading to the continuing downtrend of VND. With the current stress, VCBS believes that liquidity risks to the safety of the financial system will also increase without close monitoring and management measures.

Therefore, the negative situation will have an impact on investors’ sentiment, pushing VN-Index down below the bottom 1,000 points in the short term. VCBS recommends that investors actively raise the proportion of cash, patiently wait for the market to find the balance point and limit disbursement to catch the bottom early.

Phuong Linh/Market Lifestyle