As always, the Vietnam stock market extremely volatile as VN30 future contract mature. The short selling team dominated caused VN-Index corrected deeply.
At the end, VN Index dropped 9.03%, or -0.65% and closed at 1,384.77. Liquidity decreased slightly as the trading value was only VND 21,014 bn, equivalent to 709mn shares traded. Meanwhile, foreign investors continued to net sell VND 790 bn.
Selling pressure on large cap stocks in VN30 basket was the main reason causing the index's deep drop. VIC (-1.41%), GAS (-2.01%) and VHM (-1.14%) were the stocks with the most negative impact. Meanwhile, the steel giant, HPG (+0.53%) kept the green thanks to unexpected 3Q business results and contributed the most to the index, followed by OCB (+2.82%) and MSB (2.93%).
VN Index closed with a long red candle, showing that sellers completely dominated the market. The MACD and RSI also reversed showing consensus for a correction. However, the index generally did not fall hard and is near the support level of 1,380. Besides, the difficulties were over, and the economy is in the recovery process, uptrend is more likely at the present. Therefore, corrections are an opportunity to load more stocks
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