Many giants on the stock exchange saw a drastic fall in stock prices in 2022, with losses amounting to more than US$11 billion. This sharp correction of the stock market last year also caused huge losses for several retail investors as well.
The VN Index is ranked among the group of stocks with the strongest decline in the world of 42 percent since the beginning of the year. However, besides plummeting at some sessions, the VN Index is also unbelievably gaining in some sessions as well.
Although the VN Index has returned to an attractive level compared to previous sessions, issues such as low-levels of liquidity and corporate bonds risks still need to be resolved for the market to once again gain momentum.
During the last seven to eight trading sessions, the VN Index suddenly went down and then up again to bottom at 1,150 points. The Index almost stood still and always looked like it was going to break bottom. This resulted in a loss of liquidity in the stock market that left several investors doubtful.
The first months of 2022 have been turbulent times for the stock market; the market has been volatile in recent sessions. In addition to the influence of cautious psychological factors, many investors have been greatly affected by fake news and rumors on social networks. Accordingly, Ms. Ta Thanh Binh, Director of the Securities Market Development Department under the State Securities Commission advised stock investors should be alert to fake news and rumors to avoid psychological impacts leading to mistakes in investment decisions.
Vietnamese shares are forecast to extend their growth in the final week of August by a marginal rate while volatility is widely expected by analysts as buyers are believed to be cautious due to the lack of news that could bolster optimism in the market.
Vietnamese shares plunged on December 11 as investors turned cautious before exchange-traded funds (ETFs) started restructuring their portfolios. A lack of information during the year-end period also had an impact on confidence.
Shares advanced further on both local exchanges on November 13 as investors eagerly anticipated some companies’ sale of more shares to reduce the State’s capital holdings, and by the impacts of the APEC event last week.
Shares rebounded on the HCM Stock Exchange on November 1 as large-cap stocks returned to positive territory. The overall market trading conditions remained negative, however, and signaled more volatility in the near future.