Daily Market Watch 06/02/2026: Broad Correction As Retail Investors Rush To 'Sell Before Tet’

MARKET HIGHLIGHTS

o      The market opened in a negative tone. Investors were hesitated from the beginning of the day as the correction in the broader market extended. Large-cap stocks fell further and weighed on the Index. While small/mid-cap stocks plunged further due to the gloomy sentiment. The adjustment of global equities as well as commodities/cryptos added more concerns in the near term. Stock prices traded lower across the board as a result.

o      Very similar to yesterday, Vingroup stocks were strong and helped pare losses of the Index. At a point, it pushed the Index to the reference level and boost confidence among the market. However, strong selling pressures from foreign investors emerged and focused on several key large cap stocks. Meanwhile, retail investors pushed on selling due to the ‘sell before Tet’ pattern. The long holidays is coming (from end of next week) and many want to trim down exposures to equities as well as to bring down borrowing level to avoid cost of funding during the market break. This year selling pressures tend to be stronger due to (1) very high margin lending balance (at the end of Q4 2025 total margin lending amount surpassed USD16bn) and (2) the recent rise of interest rate. Selling overhang may continue to be aggressive until next Wednesday we believe. After Wednesday, proceeds may not arrive before Tet (T+2 settlement).

o      There were some attempts to recover in the afternoon as bottom fishing activities emerged. Yet, retailinvestorswere more decisive in selling as they saw that the recovery soon weakened and market momentum was not positive. Stock prices tumbled further in the last session and shaved 1.5% from the VN-Index. The large-cap VN30 Index plunged 1.3% as it was supported by the positive performance of Vingroup stocks. The remaining names traded negatively (24 losers vs 4 gainers). Mid-cap underperformed, down 3%, as retail investors run away at the end of the day. Many high beta names declined 3%-5% as we observed. Small-cap stocks were also weak. The overall market sentiment was rather negative.

o      Liquidity improved as selling activities surged. Total trading value today reached USD1,450.5m as both selling pressures and bottom fishing were active. However, the sell side was dominant toward the end of the day. Foreign investors extended there selling streak with a net sell value of USD35.4m, focusing on VCB (-USD23.5m), VIC (-USD12.1m), and HDB (-USD7.5m). On the other side, MBB (+USD16.9m), HPG (+USD7.6m), and STB (+USD5.9m) were bought well.

o      In terms of performance: it was a broad adjustment, all sectors closed down. Consumer Discretionary (-3.4%) fell the most due to the decline of all key stocks (PNJ -6.3%, FRT -5.6%, MWG -2%). Those names had increased well recently, thus facing stronger profit taking. Industrials (-2.2%) and Materials (-2.7%) also saw heavy adjustment as most stocks in these sectors are high beta. Financials (-1.7%) decreased as most banks and brokers retreated. Noticeably, foreign investors sold VCB (-4.8%) massively and bought MBB (+1.1%) very well. Property only fell 0.5% thanks to the positive movement of Vingroup names. Other players fell quite strongly though.