HÀ NỘI — After a record surge in the previous session, the stock market tumbled on Friday, August 22, with widespread selling pressure dragging the VN-Index down more than 42 points.

Analysts noted that while the broader uptrend from earlier in the week has not been erased, the current correction could extend for one or two more sessions before the market finds equilibrium.

According to Viet Dragon Securities, the sharp decline provides an opportunity for investors to take profits, narrow portfolios and reduce equity exposure, while waiting for stabilisation around support levels. VPS Securities also forecast that the VN-Index may test lower points in the coming sessions before regaining balance.

At the close, the VN-Index on the Ho Chi Minh Stock Exchange fell 42.5 points to 1,645.47 points. Market breadth was overwhelmingly negative with 275 losers, including 24 stocks hitting their floor prices, against only 76 gainers. Liquidity remained high, reaching nearly VNĐ62.14 trillion, well above the previous session.

The VN30-Index, tracking the 30 largest stocks by market capitalisation and liquidity, shed almost 61 points. A series of large-cap stocks were locked at the floor, including Vietnam Prosperity Joint Stock Commercial Bank (VPB) and Vietnam Rubber Group – Joint Stock Company (GVR).

Others such as Techcombank (TCB), Asia Commercial Joint Stock Bank (ACB), Military Bank (MBB) and Sacombank (STB) dropped between 4 and 6 per cent. VPB and TCB were the biggest drags on the VN-Index.

Trading volume spiked in banking and steel shares, with SHB and Hoa Phat Group Joint Stock Company (HPG) leading with more than 166 million and 132 million units traded, respectively, though both closed sharply lower. Foreign investors extended their net selling streak with more than VNĐ1.3 trillion sold, including nearly VNĐ1 trillion in HPG alone, while VPB, PetroVietnam Oil Corporation (OIL) and STB also saw heavy outflows.

A few large-cap stocks provided rare bright spots, cushioning the index from a deeper fall below 1,630 points. The Bank for Investment and Development of Việt Nam (BID) rose 2.84 per cent, Vietcombank (VCB) gained 1.87 per cent, while Vietnam International Bank (VIB) and Duc Giang Chemicals Group JSC (DGC) also advanced. VDS Securities JSC (VDS) even hit its ceiling price, defying the market downturn.

The sell-off also triggered sharp swings in the net worth of Việt Nam’s stock market billionaires. According to Forbes, Hòa Phát Chairman Trần Đình Long saw his fortune drop by US$143 million to $2.6 billion, while Techcombank Chairman Hồ Hùng Anh lost $106 million, also to $2.6 billion.

Vingroup Chairman Phạm Nhật Vượng and Vietjet CEO Nguyễn Thị Phương Thảo both saw slight declines, with their fortunes now estimated at $12.7 billion and $3.6 billion, respectively.

Despite Friday’s plunge, the VN-Index still closed the week up more than 15 points overall, thanks to earlier gains. Market experts expect the coming sessions to remain volatile as investors consolidate positions, with resistance around 1,660 points and a key support zone near 1,625 points. — VNS