Vietnam Daily Market Recap Dec 06, 2022 – Property development & Investment

Market commentary: The VN-INDEX tumbled as strong selling pressure emerged across all sectors

Investors’ enthusiasm was put to a test by heavy profit-taking pressure after the market’s spectacular gain, resulting in a sharp decline of 45.0pts for the VN-Index, which closed at 1,048.7pt. In the US, Dow sheds nearly 500pts on fears that the Federal Reserve may continue tightening until it tips the economy into a recession. In Vietnam, investors’ optimism after credit limit extension news was released late yesterday were quickly swept by strong selling forces right after the opening bell. The pressure from profit taking activities pushed Banking, Real Estate and other stocks with recent impressive gains down, causing the market’s breadth to narrow very quickly. The sell side completely overwhelmed the buy side, pushing the VN-INDEX down 2,25% at 10:30. In the afternoon, blue-chips continued to drop deep and profit taking activities spread all over the market. VN30-INDEX closed down 5.12%, a record drop for the index in 2022. Notably, HPG, a stock that had just experienced a quite significant gain, was sold off to the floor price at the start of the afternoon session. Foreign investors are still a bright spot when they maintain net buying while the majority of sellers are domestic investors. Supporting stocks today were VHC (+7.0%), DCM (+4.3%), HAG (+7.0%). Equities such as VCB (-5.9%), VHM (-5.7%), BID (-5.2%), VPB (-6.9%), HPG (-7.0%), and CTG (-5.6%) all have a positive correlation with the market. At the end of the session, the VN-INDEX dropped considerably by 4.1% to 1,048.7pts, while the HNX-INDEX plumped by 3.3% to 212.8pts.

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