Market Trends: The crowd effect


  • Vietnam stock market witnessed the strongest correction since the September.


  • In particular, VN Index dropped 10.64 points (-0.79%) and closed at 1,339.84. Liquidity remained at a high level with a trading value of VND 23,432 bn, equivalent to 859mn shares traded. Foreign investors reversed to be net sellers again when they net withdrawn VND 448 bn.


  • Over the session, VN Index, VHM (-3%), VCB (-1.61%), VIC (-1.27) had the most negative influence on the index. Meanwhile, the gain of chemical giant DCG (+6.24%), along with VIB (+2.6%) an BVH (+3.34%) only helped VN-Index narrowing the fall.


  • In general, the market correction might be due to the concern of most investors related to the risk of default of Evergrande Real Estate company in China, which many believe that will leading to a global financial crisis. However, there is no specific evidence to show that the potential crisis can affect the real estate industry as well as the Vietnam economy.


  • Technically, VN-Index fell sharply, broke down the short-term downtrend line that was passed earlier and narrowed after testing the strong support at MA50, MA100 and middle line of Bollinger bands. Bands. The MACD and RSI also reversed to test the uptrend line. Another remarkable point is that the MA50 has cut below the MA100, forming a death cross. If this situation persists, the previous growth pattern could be reversed.

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