VN-Index dropped nearly 95 points

VTV.vn - After a long increase and several slight correction sessions, the stock market today suddenly dropped sharply, creating an unexpected shock for investors.

In terms of absolute points, this is the sharpest decline in trading history.

The stock market opened the first session of the week with high selling pressure from early on, at times losing more than 17 points due to information about the results of bond inspections at many listed enterprises.

NVL opened at the floor price, ACB, VIB,SHB decreased by 1% or MSN also turned to decrease points continuing from the end of last week after turning from near ceiling price to red price.

Last weekend, the Government Inspectorate announced the conclusion of its inspection on compliance with legal policies in the issuance and use of funds from individual corporate bonds.

Among the names violating the purpose of using funds mobilized from bonds are some commercial banks, Novaland Group and Masan Group.

The Government Inspectorate concluded that Masan Group and two subsidiaries, Masan Consumer and Wincommerce, used funds from corporate bonds for purposes other than those issued, totaling nearly VND2,000 billion.

Selling pressure from stocks with inspection conclusions along with adjustments from large-cap stocks like Vingroup caused the market to sink deep into red.

The highlight today comes from Viettel stocks when CTR and VTP closed at the ceiling price while VGI also increased by nearly 9%. This is also a group of stocks that have been left out of the general market's price increase race over the past 5 months.

Stock market plunges, VN-Index plunges more than 94 points

After a long series of increases and several sessions of slight correction, the stock market today suddenly fell sharply, creating an unexpected shock for investors. Although not the biggest drop in percentage terms, in terms of absolute points, this is the biggest drop in trading history.

At the end of the session on October 20, VN-Index decreased by 94.76 points to 1,636.43 points. Liquidity reached more than 53,294 billion VND with 1.7 billion shares traded. On the whole floor, only 34 codes increased, while 325 codes decreased, 19 codes remained unchanged; especially 108 codes hit the floor.

On the HNX floor, the HNX-Index lost 13.09 points to 263.02 points, with trading volume reaching 190.2 million shares, equivalent to more than VND4,558 billion. The UPCOM-Index also decreased 2.36 points to 110.31 points, with 63.5 million shares traded, with a total value of more than VND1,003 billion.

Selling pressure was widespread: all 30 stocks in the VN30 basket fell, of which 13 stocks hit the floor. The banking group had only 2 stocks remaining in the green, while 10 stocks hit the floor. Securities, oil and gas, insurance, real estate, information technology and communications stocks... were all in the red, with many stocks hitting the floor.

After two consecutive sessions of decline, the VN-Index has lost a total of about 130 points from its peak, erasing all the gains since the beginning of October. Analysts said that short-term profit-taking pressure and foreign investors' net selling of more than VND2,000 billion were the main reasons for the sharp market decline.

At the recent Investor Day event, Mr. Le Anh Tuan - General Director of Dragon Capital - commented: "Volatility in an uptrend is inevitable. It is completely normal for the market to increase or decrease by 5-10%. When we understand the true nature, those corrections are opportunities."

Mr. Tuan emphasized that the long-term trend and internal strength of the Vietnamese stock market are still being strongly consolidated thanks to a stable macroeconomic foundation, increasingly interested foreign capital flows and the development of domestic financial institutions.

According to Mr. Tuan, Vietnam is gradually perfecting the criteria to be upgraded from a frontier market to an emerging market (MSCI Emerging Markets) and further to an advanced emerging market (FTSE Advanced Emerging) in the next 3-5 years.

The upgrade is of particular importance, as Vietnam will then be included in the investment portfolios of hundreds of large investment funds in the world, attracting tens of billions of USD in foreign capital into the stock market, creating a strong transformation and opening a new, more sustainable growth cycle.

Previously, many securities companies also advised investors to be cautious, considering the adjustment as necessary for the market to rebalance. In the medium and long term, Vietnamese securities are still considered an effective capital attraction channel thanks to the positive macroeconomic foundation and loose fiscal and monetary policies to support growth.

Source: https://vtv.vn/vn-index-giam-gan-95-diem-100251020164632868.htm