VN-Index may remain volatile after surprise 31-point plunge

Vietnam’s VN-Index could remain volatile for another one or two sessions after its surprise 31-point fall, securities firms said. They expect the market to test whether it can hold important support levels.

Lương Duy Phước, analysis director at Kafi Securities, said the sharp decline on September 7 mainly reflected profit-taking after a rapid rise. Large-cap stocks amplified the index’s fall. On the Ho Chi Minh Stock Exchange, 235 stocks declined while 84 advanced. VIC, TCB, VCB and VHM alone accounted for about two-thirds of the VN-Index’s loss.

Trading value reached roughly 13.7 trillion Vietnamese dong, not significantly higher than in previous sessions and below the short-term average. That suggested the market had not entered a panic-selling phase. Money appeared to be reducing exposure to market-sensitive sectors such as securities, banking and retail. Although real estate stocks fell sharply, active selling pressure was not proportionate, indicating that several leading stocks heavily influenced the index.

Phước favored an interpretation of the move as a correction and a rebalancing of funds after a period of rapid gains. He said the outlook would become more concerning if the index fell below 1,800 to 1,820 points while trading volume rose sharply and selling spread among leading sectors.

Tien Phong Securities said VIC contributed more than half of the index’s decline and cautioned that the VN-Index did not fully reflect the broader condition of individual stocks. The index remained above key exponential moving averages, so there was not yet enough evidence of a trend reversal. ASEAN Securities placed nearby support at 1,820 to 1,830 points and resistance at 1,840 to 1,850. BIDV Securities expected volatility to continue for one or two sessions, especially as the market approaches its previous peak zone of 1,870 to 1,900 points. HSC advised investors to avoid chasing gains and high leverage, while TPS recommended waiting for support tests and clearer technical signals before adding positions.