Nearly 800 codes decreased, dozens of stocks fell to the floor

Very active trading has pushed market liquidity to very high levels. The matched order value on HoSE in the morning session alone exceeded 26,300 billion VND (~1.1 billion USD).



After suddenly falling nearly 30 points, the market's downward momentum somewhat slowed down as selling pressure subsided and bottom-fishing demand entered the scene. However, this state did not last long because the selling pressure then increased sharply and continued to spread.




The selling force was overwhelming on large capitalization stocks, especially the banking group. Many real estate stocks also dropped sharply from their high prices at the beginning of the session, causing the market to lack support. The number of stocks that fell deeply increased rapidly, with more CTG, GAS, NLG, KDH,... touching the floor next to the names that "fell" early at the beginning of the session.





VN-Index at one point lost more than 40 points before pausing in the morning session with a decrease of 35.91 points (-2.84%) to 1,227.87 points. The number of red decreasing codes was up to 799 codes, completely overwhelming the increasing price direction. Of these, 25 stocks are still at floor prices even though the market has slightly narrowed its decline compared to the session's lowest level.




Notably, very active trading has pushed market liquidity up very high. The matched order value on HoSE in the morning session alone exceeded 26,300 billion VND (~1.1 billion USD). Calculating all 3 exchanges, this number is up to nearly 29,500 billion VND. Foreign investors also created more pressure when they net sold more than 500 billion VND on HoSE in the morning session.





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After a period of struggling at the top of 15 months, the stock market in the first session of the week suddenly dropped sharply under intense selling pressure after 10am. VN-Index at times decreased by nearly 30 points and retreated to near the threshold of 1,230 points. Trading was especially exciting with matching value reaching nearly 15,000 billion VND after just over an hour of opening session.




Selling pressure was overwhelming on a large scale, declines of over 3% became common in large capitalization groups. In particular, most of the stocks that have increased rapidly in recent times have had strong profit taking, DGC, VTP, GVR, VGC, SIP,... at times hit the floor.





In general, the pressure to take profits is understandable when the market has had a long rising period before without any really clear correction. VN-Index increased nearly 12% from the beginning of the year, along with many stocks that increased by the same amount, surpassing historical peaks,... The sharp decline of the market partly stemmed from fear of risk of VN-Index forming a model. 2 peaks affected investor psychology.




Mr. Nguyen Anh Khoa, Head of Analysis - Agriseco Securities Research, said that the market will have to continue to experience increases/decreases with a wide range next week before a clearer trend appears due to the 1,280- 1,300 points is considered a strong resistance threshold for VN-Index.





Besides, momentum indicators are weakening, showing that the index will need time to accumulate again if it wants to continue its main upward trend. The risk of establishing a double top model is only really considered in the scenario where the notable support threshold of 1,250 points is broken.




Besides, the increased net selling pressure of foreign investors recently is also a factor holding back the market. Although the long-term prospects of Vietnamese stocks are still highly appreciated, in the short term this capital flow is inevitably affected by general trends in the world. The strong net selling of foreign investors in the past 2 weeks, according to Mr. Huy, is an understandable negative development.





Mr. Bui Van Huy - Director of Ho Chi Minh City Branch of DSC Securities said that there have not been too many risks, but the market is gradually recognizing more negative factors. Currently, the world market is in a sensitive area as the rising momentum of stock markets is slowing down with overbought signals and waiting for the Fed's meeting in the middle of next week.




The US CPI continued to rise in February and US government bond yields increased sharply again, which are important signals worth paying attention to. The Fed's meeting on March 20-21 will be very directional for asset markets.