Opening the September 4 trading session, the stock market witnessed a sharp decline with the VN-Index losing 15 points, falling below 1,270 points.

When the order-matching transactions finished, all 30 shares belonging to VN30 saw prices decreasing. Foreign investors continued their strong sales, especially bank, finance and real estate shares, including VPBank (VPB), Techcombank (TCB), Saigon Securities Incorporated (SSI), SeABank (SSB), Saigon-Hanoi Bank (SHB) and Vinhomes (VHM).

However, the demand for bottom fishing helped prevent the market from falling too sharply.

By 9.50am September 4, the VN-Index regained the 1,275 point threshold. Some shares recovered strongly and began increasing, including Vinhomes, Vincom Retail (VRE), Bank for Investment and Development of Vietnam (BIDV), and PV Gas (GAS).

VHM prices increased sharply. They increased by another VND650 per share by 9.52am to VND42,150, though foreign investors sold 491,000 units and only bought 190,000 units.

Prior to that, Vinhomes ‘played big’ when deciding to spend ten of trillions of dong to buy back 370 million VHM through order-matching or put-through methods. This was the information that supported VHM to increase again in August.

Analysts said that buying back shares was a move to protect the benefits of the company and its shareholders. This is what listed companies do to prevent prices from falling too sharply.

In 2019, Vinhomes once bought back 60 million units at the price of VND92,000 on average. In 2021, Vinhomes sold all the treasury stocks at the price of VND110,000 per share.

Though some major shares have recovered, in general, the selling pressure still existed and the market was covered by investors’ cautiousness.

Analysts said Vietnam’s securities prices are decreasing in the context among the storms in the world’s financial market.

The US stock market lit red in the first trading session of September. The Dow Jones lost 600 points (1.5 percent) in the session. Technology shares were bargained away and some poor economic statistics raised worries about the health of the world’s largest economy.

The S&P 500 decreased by 2.1 percent, and Nasdaq 3.3 percent.

Some Asian markets, including Japanese, also witnessed indexes falling on September 4 morning.

The investors’ caution and the continued storms in many markets were the reason that blocked the cash inflow.

The noteworthy factor was that foreign investors continued to sell Vietnamese stocks in large quantities. Their net sales have reached $3 billion so far this year. The figure since 2020 would be much higher.

The HCM City Stock Exchange (HOSE) now has the capitalization value of VND5 quadrillion, or $200 billion.

Manh Ha