Vietnam Daily Market Recap Apr 19, 2022

Market commentary: Panic selling in the late afternoon snuffed out VN-INDEX’s recovery effort

A solid technical recovery momentum was maintained for most of the session until a surprising panic selling even occurred across all sectors towards the late of the afternoon session leading the VN-INDEX to fall 26.2pts to 1,406.5pts. European equities opened lower on Tuesday after Russia began a new ground offensive in Ukraine and the World Bank cut its global growth forecast, citing the inflationary effects of the war, however, Index opened with a 3.2pts gap up following yesterday’s sharp drop. The VN-INDEX saw a divergence when the Banking, Retail, Chemicals, and Fertilizer groups drew capital flow, while the Construction, Real Estate, and Public Investment sectors exerted pressure on the index in the opposite direction of the trajectory. Throughout the remainder of the morning session, the market wavered and struggled to remain above the reference level. VN-INDEX suffered a loss in the afternoon session, in contrast to the favorable developments in the morning session, as a result of selling by investors who focused on portfolio management. Towards the close of the afternoon session, a sharp sell-off erupted over the whole market, particularly in small & medium-sized Banking, and Real Estate stocks, leading the Index to fall vertically and repeatedly penetrate any support levels. Before entering the ATC session, the market retreated to its session low of 1,410.0pts with 16.4% lower liquidity compared to yesterday’s session. GVR (-4.9%), MSN (-2.8%), TCB (-2.6%), VHM (-1.3%), VPB (-2.3%), MBB (-3.3) were stocks that had a positive correlation with the market. On the other side, HPG (+1.5%), VJC (+3.5%), DGC (+4.0%), DPM (+4.3%), FRT (+5.1%) slightly reduced the index’s dropping momentum. At the end of the session, the VN-INDEX decreased dramatically by 1.8% to 1,406.5pts, and the HNX-INDEX dropped significantly 2.6% to 4392.7pts.

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