Daily Market Watch 20/08/2025: Heavy Drop Intraday Was Offset By The Strong Rally of Banking and Vingroup Stocks

MARKET HIGHLIGHTS

o       The market fluctuated in a narrow range in the morning. Retail investors were reluctant as they saw momentum was fading. Selling pressures were visible in the broader market, especially in many. small/mid-cap stocks. While large-cap stocks that had rallied well in the last few days also showed signs of weakening. The rotation of performance moved to smaller banks such as BVB, NAB, NVB, VIB, etc. but it was not sufficient to lift sentiment.

o       Investors turned to be more panic in late morning session as stock prices started tumbling across the board. Many translated that this round of rally could be exhausted and the adjustment phase may. have started happening. Thus, they rushed on selling quite aggressively in order to lock profit and reduce risk exposures. Besides, a number of investors anticipated that the market may correct soon after. a very long rally. As a result, they quickly sold when the market turned negative. The VN-Index retreated as much as 2.9% before recovering slightly at the end of the morning. Many stocks fell by 3%-7% as. we observed. Some approached or hit limit down. There were some rumors that VPS, the largest broker in term of market share, restricted their margin lending policy which created real panic among retail. investors

o       It’s interesting that there was a notable recovery in the afternoon session. Bottom fishing activities kicked in and stock prices started recovering gradually. VPS confirmed that the rumor regarding its. margin lending policy is not correct. The turnaround was stronger as several large-cap stocks did very well and boosted sentiment. Several banks even increased strongly and approach their limit up. prices such as VPB, LPB. While Vingroup stocks hiked sharply and contributed largely to the Index. The VN-Index even rose +0.6% at close, posting an intraday swing by as much as 3.5% from low. The. market breadth was still largely negative with 83 advancers vs. 259 decliners. The majority of the gain came from a small list of large-cap stocks, while most small/mid-cap stocks still declined.

o       Liquidity surged significatly due to both heavy selling activities in the morning and buy back in the afternoon. ADTV increased 24.8% DoD to reach USD2.6bn. Local investors seem to be very active. during this window. Foreign investors continued dumping, but with a lesser value of USD15.6m. They were actually buyers in the afternoon when the market recovered.