Covid-19 has had a big impact on the economy. The GDP grew by 3.6 percent in Q2, the lowest growth rate in 10 years.

The stock market has also suffered from a Covid-19 crisis. In Q1 alone, the VN Index lost 220 points with a slide of more than 90 percent of shares in the market.

In Q1, especially March, the market witnessed trading sessions with the VN Index tumbling. All 100 percent of shares in VN30 group plunged in price. The ROS, for example, dropped by 81 percent in Q1, while the MWG was 48 percent.

However, at the beginning of Q2, the shares with large capitalization value unexpectedly bounced back in the first two weeks of April after bottoming out.

Analysts said Covid-19 has disrupted the normal 'rules' of the bourse. Investors did not ‘sell in May and go away’, but earned big money as the market saw a strong rise that month.

Analysts said Covid-19 has disrupted the normal 'rules' of the bourse. Investors did not ‘sell in May and go away’, but earned big money as the market saw a strong rise that month.

May 2020 was the first time in the last 10 years that the VN Index obtained a sharp increase of 12 percent. The index soared by 94 points from 767 to 861 on May 29.

However, analysts pointed out that foreign investors sold more than they bought, though the market grew hot.

The cash flow from Vietnamese investors served as the major force of the market. The lower bank deposit interest rate and the reasonable prices of shares both prompted investors to pour money into stocks.

The ‘heat wave’ was followed by a cool down in June with the VN Index decreasing by 80.5 points from a peak on June 8.

The share prices in July were affected by the Q2 business results announcement season. Businesses were expected to have worse business results in Q2 because of Covid-19.

The stock market continued to wobble in recent trading sessions as new Covid-19 cases in the community were reported. July ended amid investors’ fear as the epidemic continue to affect people’s lives and the economy. The social distancing policy was once again imposed in some localities.

The VN Index lost 24 points in July and heavy fluctuations occurred in the last trading sessions of the month.

However, analysts can see one positive difference between now and the first correction caused by COVID-19 – the net purchase by foreign investors.

On the HOSE, foreign investors’ net purchase was VND14.85 billion on July 30. VNM was the most wanted share with net purchase of VND39.3 billion (361,000 shares), followed by VNM with VND30.2 billion (VND396,000 shares).

Meanwhile, HCM was the share with the biggest net sale, with VND28.7 billion (1.7 million shares).

Ngoc Ha 

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