Daily Market Watch 22/08/2025: VN-Index Suffers Sharp Correction Amid Both Retail and Foreign Sell-off

MARKET HIGHLIGHTS

o       The VN-Index opened under significant profit-taking pressure, as weak momentum from the previous session reinforced expectations of an imminent correction. Initial gains from banking leaders VCB. and BID—on speculation they may be authorized to manage Vietnam’s official gold exchange—briefly pushed the benchmark into positive territory. However, selling pressure quickly broadened across. the market, dragging the index down 2.04% by the end of the morning session. The pullback is seen as a technical correction after the market’s extended rally, with mid- and small-cap stocks already. showing weakness earlier in the week. Large-cap stocks also pulled back after a significant rally of banking stocks in the last several days. Many could not maintain the momentum and reverted. Meanwhile, the uptick in the USD/VND exchange rate added another layer of caution to investor sentiment.

o       In the afternoon, bottom-fishing emerged as traders expected recovery in the afternoon as usual. But heavier profit-taking from retail investors deepened losses, sending the index to an intraday. trough of 1,629.49 points. A wave of buying in mid- and small-cap names from around 2 p.m. provided support, allowing the VN-Index to pare back losses and close at 1,645.47, down 2.52% for the day.

o       VN30 names bore the brunt of the sell-off, sliding 4.2% as foreigners net sold over USD62.5m worth of stocks in the basket. Declines were widespread, with 24 of 30 constituents in the red and several, including VPB, GVR, and SHB, hitting their floor prices. Mid- and small-cap indices also posted their third consecutive session of losses due to the panic sell of local investors. Many stocks fell over 5% at. close.

o       Liquidity surged on the broad-based panic sell, with total market turnover reaching USD 2.39 bn (+21.9% DoD). Foreign investors extended their selling, net offloading USD 51.8 mn on HOSE, led by HPG (-USD 40.1 mn), VPB (-USD 12.5 mn). Buying activity was more modest, concentrated in VIX (+USD 7.0 mn), PDR (+USD 5.1 mn), and BSR (+USD 3.3 mn).