Despite investor fears, the stock market has seen an increase of approximately 1.1 percentage points in the VN Index in May. Although, it is the influx of short-term capital that has been driving the markets during this subdued phase.
Several banking, real estate, securities, and steel stocks fell to the floor despite the positive news that the State Bank of Vietnam has officially expanded the credit room by 1.5-5 percent, increasing credit growth in the year to 15.5-16 percent compared to the target of 14 percent at the beginning of the year.
Despite the selling pressure in many sectors, the VN-Index still gained slightly in the trading session on the last day of October, thanks to the effort of the pillar stocks. In contrast, steel stocks continued to be engulfed in the red color due to heavy losses in the third quarter.
With several negative information in the market, the VN-Index continued to decrease by nearly 39 points in the last session of the week on October 7. Market capitalization on the HoSE lost another VND153.5 trillion in the trading session to VND4.12 quadrillion. The VN-Index was in the top five Asian stock indexes with the sharpest drop on October 7.
Stockholders dumped shares heavily, whereas investors holding money did not participate in the market, causing the VN-Index to retreat to near 1,200 points. With a drop of roughly 29 points in the trading session on September 19, all previous gains of the VN-Index in August were erased.
While the cash flow has not shown any signs of returning to the market, the selling pressure caused the VN-Index to fall off the milestone of 1,200 points in the last trading session of the second quarter.