Daily Market Watch 07/11/2025: Panic Sell Extended, The VN-Index Dipped Below 1,600pts

MARKET HIGHLIGHTS

o       The equity market opened lower, extending the previous day’s downward momentum. Liquidity remained weak as investors stayed cautious as trading was negative, while Vingroup and banking stocks continued to side and weighed heavily on both the Index and overall sentiment. Small/mid-cap stocks mostly moved sideways around the reference price. The VN-Index gradually fell to 1,620 during the morning session.  There was no visible attempt to recover.

o        In the afternoon, the market experienced another wave of panic selling. Vingroup-related stocks plunged sharply, dragging down both the. index and investor sentiment. Retail investors turned extremely fearful as accumulated losses deepened, with many stocks dropping more. than 30% since early October. Heavy margin leverage further amplified the damages. The VN-Index closed at 1,599.1 points (-2.65%), with a. broad-based sell-off. There were only 59 stocks advanced versus 270 decliners. The Index fell -2.47% for the week, marking its fourth. consecutive weekly decline. It has corrected 10.9% from peak.

o        According to our observation, total margin lending at brokerage houses has not declined much from peak levels despite the ongoing. correction. Meanwhile, the growing FX pressure is adding to market concerns as the DXY is moving up rapidly. The grey market USD/VND. exchange rate has surged quite sharply, and the spread with the official rate is quite high. This raises potential risks of a devaluation or interest. rate hike ahead. Interbank rates have also climbed above 6% (vs. ~4% average in recent months), signaling tighter funding conditions that. could dampen the equity market.

o        The VN30 Index fell 2.40% today, with 28 out of 30 constituents closing lower. Several large caps recorded heavy losses alongside strong. foreign net selling, including VHM (-6.98%), STB (-6.84%), and MWG (-4.73%), while most others dropped 1–4%. Small/mid-cap stocks. reflected heightened panic among retail investors, plunging sharply after 2 p.m. The mid-cap VNMID Index dropped -2.80%, while the small. cap VNSML fell -1.5%. High-beta industrial names declined the most, many losing 3–7%.

o        Market liquidity rose significantly compared to yesterday. Total trading value reaching USD 945.8 mn (+37.7% DoD), driven by a surge in panic. selling after 2 p.m. However, this is still very much lower than the average liquidity in the last 3 months. Retail buyers were not active even at. lower prices as we noticed. They need a more convincing catalyst/news to be more confident. Besides, many are facing margin call pressures. due to.

o        Foreign investors continued to net sell USD 49.8 mn, extending their weekly outflow to USD 80 mn. Heavy selling focused on STB (-USD 11.4 mn), HDB (-USD 6.4 mn), and MBB (-USD 4.3 mn), while notable net buys included HPG (+USD 11.5 mn), FPT (+USD 4.6 mn), and PVD (+USD 3.2 mn).