VN Index Slumps Below 1,800 Points as Selling Pressure Spreads Across Market
The Vietnamese stock market continued its negative trajectory on July 15th, with the VN Index quickly losing the crucial 1,800-point threshold and hovering around the 1,780-point level throughout the session. This decline followed a brief technical rebound in the previous session, indicating persistent cautious sentiment among investors.
Market Performance During the Session
As anticipated by many analysts, the market failed to sustain its short-term upward momentum. The July 15th trading session witnessed strong selling pressure across multiple stock groups, causing the VN Index to plunge significantly within the first 30 minutes of trading.
According to market observations, the VN Index dropped below 1,800 points shortly after the opening bell. Throughout the session, the index oscillated around the 1,780-point level with narrow fluctuations, reflecting the cautious stance of both domestic and foreign investors.
Other major indices also declined in unison. The HNX Index fell by 2.1%, while the UPCoM Index decreased by 1.8%. Total market trading volume remained low, reaching only approximately 7.500 trillion VND, significantly lower than the average of 10.000 trillion VND in previous sessions.
Widespread Selling Pressure Across All Sectors
Notably, the selling pressure on July 15th was not concentrated on specific stock groups but spread across most sectors. Even pillar stocks such as banking and real estate faced substantial selling pressure.
- Banking sector: VCB, CTG, BID, and TCB all declined sharply by 2-3%
- Real estate: NVL, VHM, and HBC dropped 1.5-2.5%
- Oil and gas: PVD, PVT, and GAS decreased by 1-2%
- Steel: HPG, NKG, and HSG fell by 1-3%
Only a few blue-chip stocks like VNM and MSN managed to limit losses to under 1%, but this was insufficient to drive a market recovery.
Low Liquidity as Capital Observes from the Sidelines
One of the most concerning aspects of the July 15th trading session was the continued low liquidity. Total trading value across the market reached only about 7.500 trillion VND, considerably lower than the average of 10.000 trillion VND in recent weeks.
Data from securities firms showed a decline in trading volume on both HOSE and HNX exchanges. This indicates that capital is remaining on the sidelines, waiting for clearer signals before deciding to re-enter the market.
Summary of Trading Volume for July 15th:
| Index | Trading Value (trillion VND) | Trading Volume (million shares) | Change from Previous Session |
|---|---|---|---|
| HOSE | 5.200 | 320 | -15% |
| HNX | 1.800 | 95 | -18% |
| UPCoM | 500 | 45 | -12% |
Primary Factors Behind the Decline
According to market analysts, several factors contributed to the market's decline on July 15th:
- Cautious sentiment: After a brief rebound, investors chose to book profits and cut losses, especially as the market lacked clear supportive signals.
- Regional market pressure: Regional markets such as China, South Korea, and Japan all declined, creating negative sentiment that spread across the region.
- Macroeconomic information: Recent economic indicators suggest signs of global economic slowdown, affecting the outlook of export-oriented enterprises.
- Foreign selling pressure: Foreign investors continued net selling on both exchanges, with total net selling value exceeding 500 billion VND.
Expert Analysis
Mr. Nguyen Van Dung, Director of Analysis at a major securities firm, stated: "The VN Index dropping below 1,800 points indicates extremely weak market sentiment. Low liquidity shows that capital remains cautious and is not ready to return. We forecast the market will continue to adjust in the short term, with the nearest support level around 1,750 points."
Ms. Tran Thi Mai, a technical analysis specialist, commented: "Technically, the VN Index closing below the MA20 line indicates that the downward trend still dominates. However, if the market can hold above the 1,750 level, we might expect a short-term rebound."
Technical Indicators Summary
| Indicator | Current Value | Signal |
|---|---|---|
| RSI (14) | 42.5 | Neutral |
| MA20 | 1,820 | Resistance |
| MA50 | 1,845 | Resistance |
| Support Level | 1,750 | Key Level |
Market Outlook
For the next trading session, analysts predict the market will continue to face downward pressure. However, the correction magnitude may be narrower than on July 15th.
Investors should cautiously observe market developments, particularly important support levels. Limiting the use of leverage and managing risk are crucial factors in the current context.
In the long term, the market outlook remains positive due to the fundamental strengths of the Vietnamese economy and the expected recovery of global markets in the second half of the year.
Sector Performance Comparison
| Sector | Performance | Outlook |
|---|---|---|
| Banking | -2.5% | Neutral |
| Real Estate | -2.0% | Cautious |
| Oil & Gas | -1.5% | Positive |
| Steel | -2.2% | Neutral |
| Consumer Goods | -0.8% | Positive |
Investment Recommendations
In the current market environment, investment experts recommend the following strategies:
- Maintain a defensive portfolio allocation with higher cash positions
- Focus on fundamental stocks with strong balance sheets and sustainable business models
- Consider accumulating quality stocks at support levels
- Diversify investments across different sectors to mitigate risk
- Stay informed about policy changes and economic indicators that could impact market direction
Despite the short-term volatility, the Vietnamese stock market's long-term potential remains intact, supported by ongoing economic reforms and the country's favorable demographic dividend.