Vietnam Daily Market Recap Mar 20, 2023

Market commentary: The VN-INDEX was under severe selling pressure, foreign investors turned into net sellers after sessions of net buyers

The VN-INDEX was put under strong selling pressure following the UBS-Credit Suisse take-over deal, falling 2.1% to 1,023.1pts in today’s session. Asia-Pacific stocks fell, even as Credit Suisse was bailed out and central banks coordinated their efforts to boost liquidity in financial markets. This event alerted investors to the possibility of more bad news, and Credit Suisse’s price tag reflects the company’s complicated issues. In line with the negative sentiment of Asian markets, VN-INDEX opened cautiously with a gap down of 4.0pts. The main index was under selling pressure from the start of the session, with investors placing a particular emphasis on stocks in the VN-30 basket. The Banking sector was also a primary target, with the sector’s index dropping 2.8%. The VN-INDEX was falling further towards noon. When combined with the market’s narrowing breadth, this indicated that pressure was gaining momentum. Right after the break, the selling force continued to engage on a massive scale, pushing the VN-Index deep down to the bearish territory. With futile recovery efforts, the VN-INDEX then closed after the ATC session at its intraday low of 1,023.1pts. Declining stocks completely overwhelmed those with negative correlation with VN-INDEX. Indeed, VCB (-4.4%), TPB (-5.3%), CTG (-3.5%), BID (-2.1%) and VHM (-1.9%) took away points while in the opposite direction PNJ (+1.3%) and DCM (+2.5%) exerted minimal traction to the index. At the end of the session, the VN-INDEX decreased dramatically by 2.1% to 1,023.1pts, and the HNX-INDEX dropped significantly by 1.4% to 201.6pts.

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