Vietnam Insight

▶The market experienced a doomed Thursday with declines and liquidity breaking the record. Selling pressure was widespread and nearly all stocks reached floor prices. Foreign investors also recorded a net selling session of the largest volume ever, corresponding Trump's tax announcement.

▶ At the end of the trading session, the VN-Index decreased by 87.99 points (-6.68%), reaching 1,229.84 points; the HNX-Index decreased by 17.18 points (-7.22%), reaching 220.95 points. Market liquidity reached VND 44.01 trillion, which was equivalent to more than 2 billion shares traded. Foreign investors net sold VND 3,694 billion on HOSE, mostly concentrated in MBB, TPB and FPT.

▶ Technical perspective: Before President Trump's announcement of import tariffs, the market opened with a Gap down of about 40 points, then continued to fall 40 points during the session with nearly all stocks falling to the floor prices. It could be seen as a very rare decrease and is even higher than the decrease during COVID times of -6.28%. Thus, the market officially erased all gains achieved since the beginning of this year, and officially approached the support trendline. However, the index may continue to lose points for another 2-3 sessions when the force-sell pressure at securities companies increases.

Strategy: Investors should not rush to buy the bottom because the index may continue to fall. It is necessary to wait for the market to form a price base for at least 2-3 sessions. For stocks that violate the short-term trading cutloss thresholds, investors should sell or reduce positions to protect their accounts.