Stock market is in turmoil: Rush to buy falling stocks, or take profit and keep money?

The stock market on August 20th became dramatic, when the indices struggled and cash flow continuously rotated at a high level. Investors gradually turned cautious, after a series of days of hot growth of VN-Index.

Stock investors are being cautious after a series of hot increases - Photo: QUANG DINH

Shares of large enterprises were sold heavily.

The stock market started today, August 20, in the green, but immediately reversed direction and plummeted. Despite the significant amount of money pouring into "fishing" for falling stocks, selling pressure still prevailed.

Based on trading developments, it can be seen that investors strongly sold shares of HPG (Hoa Phat), VPL (Vinpearl), GAS ( PetroVietnam Gas), VJC (Vietjet)...

The banking group had a clear contrasting performance, while the codes VCB (Vietcombank), MBB (MBBank),ACB , BID (BIDV), LPB (LPBank), HDB (HDBank)... fell into red, many other codes maintained their upward momentum such as VIB, OCB, MSB, CTG (Vietinbank), TCB (Techcombank)...

While the market is in a downward trend, there are still some stocks of large enterprises receiving relatively good cash flow such as: Vingroup (VIC), VHM (Vinhomes), KBC (Kinh Bac), MWG (Mobile World), BSR (Binh Son Refining and Petrochemical)...

In terms of business sectors, most of them have decreased in points. The sharpest declines include hardware and equipment (in information technology), financial services, consumer goods, telecommunications, industrial goods, transportation, insurance, raw materials, energy, etc. In contrast, only the vehicle - components, real estate and essential goods trade sectors have maintained an upward trend but very weakly.

What strategy when profit-taking pressure increases?

Mr. Nguyen The Minh - Director of individual client analysis at Yuanta Vietnam Securities Company - said that according to the company's statistics, the VN-Index usually has an average growth rate of 1% in the second half of August every year, with a probability of over 60%.

The VN30 index, however, has a slight downward trend, reflecting that the stock market is usually less volatile during this period before entering the difficult period of September and October.

"The sentiment indicator on the VN-Index continues to decline, showing that investors are cautious as the recent increase is mainly based on financial stocks.

Therefore, short-term risks show signs of increasing," said Mr. Minh.

For today's session, experts from Yuanta Vietnam said that the short-term risks of the VN-Index show signs of increasing, investors need to limit new purchases.

Sentiment indicators are slightly up but still in a cautious trend and overall market strength is slowing.

However, the short-term trend of the general market is still maintained at an upward level. Therefore, "we recommend that investors can continue to hold the proportion of stocks at 50-60% of the portfolio, especially investors should prioritize lowering leverage to a low level and stop buying new stocks during this period," the securities company said.

Kafi Securities analysis team believes that VN-Index is testing the 1,660 - 1,670 point range and may fluctuate strongly when it goes up. The 1,625 point range is considered an important milestone to monitor trends and manage portfolio risks.

Regarding trading strategy, investors should maintain a moderate proportion, focusing on stocks with positive cash flow signals. At the same time, they should limit chasing purchases and flexibly take profits when the index approaches the resistance zone.

Temporarily closing the trading session this morning, August 20, the VN-Index decreased by nearly 21 points, falling back to 1,633 points (-1.27%). Meanwhile, both the HNX floor and the UPCoM basket also decreased by 8.3 points to 278.15 points (-2.9%) and 0.43 points (-0.39%) to 109.35 points, respectively. The total transaction value on the three main floors was at a high level of more than VND 47,175 billion.

As soon as the stock market opened this afternoon, the main indexes continued to fluctuate strongly, with the volume of stocks sold overwhelming.

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Source: https://tuoitre.vn/chung-khoan-chao-dao-lao-vao-gom-hang-rot-gia-hay-chot-loi-va-giu-tien-20250820125959233.htm