Daily Market Watch 25/08/2025: The Consolidation Went on, Banking Stock Plunged and Hit The Index

MARKET HIGHLIGHTS

o       Vietnam equity market opened the week slightly up as investors calmed down after the correction on Friday. Many stocks managed to open slightly higher and raised expectations among retail. investors that the adjustment of the market may have completed. Yet, liquidity stayed at a low level and foreign investors kept on selling quite aggressively. Besides, banking stocks weakened further. against heavy selling pressures. Local investors quickly turned to be conservative and increased selling stocks to trim down potential risks. Stock prices retreated in the broader market as a result and the. Index declined over 1% in the morning.

o       Investors were more panic in the afternoon. There were some attempts from bottom fishing activities of retail investors. But stock prices did not recover that much. Large-cap stocks faced stronger selling pressures and banking stocks fell across the board. This indicates that the market consolidation could be a more serious one and downside in the near term is still lingering. Local investors turned to be bearish. Stock prices were lower towards the end of the afternoon session. Several high beta names hit floor prices.

o       The VN-Index finished the day down 1.91%. Market breadth was negative with 100 gainers Vs 233 losers. Many stocks have declined 10%-15% compared to their peak prices 2 weeks ago as we observed. Banking stocks started correcting in the last 2 trading days. Other names already weakened for over a week.

o       Liquidity was quite low today. ADTV decreased 38.3% DoD to USD1.6bn as buyers were less active. Sellers were quite keen as we observed. This thin liquidity  may raise a lot of concerns from local investors as it would take a long time to consume the overhang selling volumes. Meanwhile, foreign investors continued dumping with a total net sell value of USD66mn. They have been selling consistently in the last 4 weeks. As local buyers are less active, such foreign outflow could weigh on stock prices (especially large-cap names) ahead.