Vietnam’s benchmark VN-Index plunges nearly 74 points over two sessions after strong rallies

The Vietnamese stock market recorded its second consecutive losing session on Monday, with the benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) declining by nearly 74 points.

At the week-beginning session, the market moved contrary to expectations of a rebound following news that the U.S. Federal Reserve (Fed) may cut interest rates in September. The VN-Index lost 31.44 points, or 1.91%, closing at 1,614.03.

Thus, after a strong upward trend, the major index has undergone two consecutive correction sessions, with a total loss of almost 74 points.

The downturn was widespread, with 239 declining stocks on the HoSE, significantly outnumbering 95 gainers.

Many sectors plunged into the red. Notably, the banking group saw several stocks hit their floor prices, including EIB of Eximbank, MSB of Maritime Bank, NVB of National Citizen Bank, OCB of Orient Commercial Bank, TPB of TPBank, VIB of Vietnam International Bank, and VPB of VPBank. The securities, real estate, and public investment sectors followed suit.

One bright spot was the Vingroup group, which provided support to the market. VIC of Vingroup surged 5.56%, closing at VND131,000 ($4.98) per share. VHM of its real estate arm Vinhomes edged up 0.31% to VND98,400. Together, VIC and VHM contributed nearly 6 points, partially offsetting the VN-Index's decline.

The trading value on the HoSE reached over VND41.81 trillion ($1.59 billion), down 33% compared to Friday, marking the lowest level in the past 14 sessions.

Foreign investors extended their 13-session net selling streak, continuing to offload stocks worth VND1.78 trillion ($67.64 million) across all three exchanges, namely the HoSE, the Hanoi Stock Exchange (HNX) and the Unlisted Public Companies Market (UPCoM) on August 25.

Major stocks facing strong net selling pressure included HPG of Hoa Phat Group, VPB, STB of Sacombank, VHM, FPT of FPT Corp, CTG of VietinBank, VIX of VIX Securities, and CII of Ho Chi Minh City Infrastructure Investment JSC.

On the other hand, MBB of MBBank, SSI of SSI Securities, SHB of Saigon-Hanoi Bank, DXG of Dat Xanh Group, GEX of Gelex Group, and HAG of Hoang Anh Gia Lai JSC were net bought.

Notably, HAG hit its ceiling price by session-end, climbing to VND17,200 ($0.65) per share with 43.3 million units changing hands, after news that it would be removed from the warning list from August 26.

On the HNX, the HNX-Index lost 2.17% to 266.58, while the UPINDEX on the UPCoM went down 0.62% to 108.58.

According to Dao Hong Duong, head of sector and equity research at VPBank Securities (VPBankS), the market had rallied sharply over the past two months, despite trade tensions and geopolitical uncertainties. Given how high the market has climbed, a consolidation phase is necessary for rebalancing. He viewed this as a period for investors to restructure their portfolios.

From a technical perspective, he noted that the VN-Index remains in a long-term uptrend, supported by a compound annual growth rate (CAGR) of over 30% in market liquidity over the past decade.

In the short term, Duong recommended investors keep an eye on whether the Fed cuts interest rates at its next meeting on September 17; exchange rate developments; the upcoming FTSE review, which may include an announcement of Vietnamese stock market status upgrade in late September or early October; and Vietnam’s trade balance and import-export turnover for August and September, reflecting the impact of tariff policies.