Stock Market Indicator, VN-Index, Halts Upsurge due to Increased Selling Demand
Spicy Stock Secrets: Vietnamese Market Sizzles and Sways on June 18
The streets of Hà Nội may have been bustling, but the Vietnamese stock market was a whole different ball game on June 18. Here's the lowdown on the heat and chaos that unfolded.
Market MeltdownThe local stock market took a nose-dive, with the VN-Index plummeting 0.86 points, or 0.06%, to 1,346.83 points. This unfortunate turn of events comes after a two-day rally, thanks in part to enthusiastic investors. However, it seems that those same investors were quick to cash in on their profits, leading to a heavy sell-off.
Drowning in RedOn the Ho Chi Minh Stock Exchange (HoSE), the ordinary Joe and Jane investor were keeping a watchful eye on the VN-Index. But the index struggled to reach new highs, peaking at 1,353.99 points before retreating back. The lackluster performance and scant liquidity suggest that investors aren't exactly confident about the prospects of a major bull run.
The Tall PoppiesDespite the gloomy market conditions, some large-cap stocks managed to shine. Leading the pack was Vinhomes (VHM), which soared 2.59%. PV Gas (GAS) and Techcombank (TCB) also scored impressive gains of 2.31% and 1.23%, respectively. However, these victories were short-lived as most major stocks ended up in the red. Viecombank (VCB), BIDV (BID), and FPT Corporation (FPT) all took a beating, with losses ranging from 0.87% to 1.52%.
Hanoi's Game of StocksOn the Hanoi Stock Exchange (HNX), the market mood was more tranquil, with the HNX-Index holding steady at 228.2 points. Investors there flushed a cool VNĐ1.4 trillion into the northern bourse, equivalent to a trading volume of 72.9 million shares. Foreign investors, however, showed a change in heart, net selling nearly VNĐ247 billion on both main stock exchanges.
The Bigger PictureSo, what exactly caused this market maelstorm? It seems there were several factors at play. Profit-taking sentiments reigned supreme as investors cashed out on recent gains, particularly in the banking and real estate sectors. The retreat of the banking sector was a major culprit, with stocks like VCB, VPB, BID, LPB, CTG, and EIB each losing ground anywhere from 1% to 1.7%. The real estate sector also contributed to the gloom, with small-cap stocks taking a hit from losses ranging over 1%.
Furthermore, broader market concerns came into the picture. Ongoing Vietnamese Dong devaluation and external trade tensions, including the impact of new US tariffs, weighed heavily on investors' minds, leading to increased caution and selling pressure.
Bottom line? The June 18 downturn was a result of a combination of profit-taking, particularly in banking and real estate sectors, coupled with external concerns such as currency depreciation and geopolitical trade tensions that dampened market sentiment. So, keep your eyes on the market canaries if you want to stay in the know!
The Thi Vai LNG Terminal, under the operation of PV GAS, in Bà Rịa - Vũng Tàu Province. Shares of PV Gas rose by 2.3 per cent on June 18, cushioning the market's downtrend. - Photo pvgas.com.vn
- In the midst of the Vietnamese stock market's downturn on June 18, some AI (artificial intelligence) algorithms might have predicted the fall due to increased profit-taking sentiments, particularly in the banking and real estate sectors.
- Despite the market's volatile behavior, astute investors may have used finances from the profits made in the likes of Vinhomes (VHM), PV Gas (GAS), and Techcombank (TCB) to invest in other promising businesses, contributing to the overall dynamics of the industry.
