The VN-Index opened in the red this morning and continuously widened its decline as sellers completely dominated. The index closed the morning session at 1,799 points, marking the second time in the past week it traded below the psychological support level. This was the sharpest correction in over two months.

Such a sharp decline early in the morning session has been rare recently, as the index typically experiences strong fluctuations during the last 30 minutes, especially in the closing auction (ATC) session.

This development aligns with the negative scenarios many securities companies predicted before today's session. Most analysts believe that the pessimistic sentiment among domestic investors, leading to cash flow weakening to a one-year low, would be the primary factor causing the VN-Index to break the 1,800-point mark.

According to analysts from MB Securities Company, the market may face difficulties not only today but also in the coming sessions. The two recovery sessions at the end of last week were insufficient to form a clear recovery trend, serving instead as merely a "pause" in the downward movement.

Investors monitor the price board at Kafi Securities Company, 4/2026. *Photo: Quynh Tran*

The Ho Chi Minh City Stock Exchange's benchmark index was negatively impacted by stocks related to Vingroup. Four stocks from this group caused the index to lose over 20 points, with VIC being the most significant contributor, accounting for over 15 points.

Banking stocks also heavily influenced the VN-Index's performance this morning. Except for LPB, which rose by nearly 3%, other banking sector representatives traded below their reference prices. ACB, MSB, KLB, SHB, VPB, and BID all lost over 2%.

The securities sector was broadly in the red, with common declines of 2-4%. Similarly, the entire steel sector closed the morning session below its reference price.

Only 43 stocks on the Ho Chi Minh City Stock Exchange saw gains this morning. The oil and gas sector made a positive contribution to the market, with some stocks like PVT, PLX, and POW bucking the trend with increases of 0,5-1%.

Despite the sharp decline in the index, the market did not experience a sell-off. Liquidity this morning was only 8 trillion VND, with large-cap stocks accounting for more than half. Currently, no single stock has reached a matching order value of over 500 billion VND.

After accumulating stocks at the end of last week, foreign investors resumed net selling on Monday morning. This group offloaded over 1.16 trillion VND while disbursing approximately 730 billion VND.

Regarding medium and long-term trends, analysts from Rong Viet Securities Company believe that the market's fundamental supports remain intact. Specifically, market valuations have largely reflected the risks from high-interest rates, while not fully demonstrating the ability of listed companies to sustain profit growth. Despite continuous net selling, the number of new accounts opened by foreign investors has increased for three consecutive quarters, indicating a positive long-term outlook. Another support is the government's implementation of solutions aimed at achieving high GDP growth targets during the 2026-2030 period.

"Current market conditions are not suitable for buying or selling decisions driven by FOMO (fear of missing out) or high leverage. However, for investors with a long-term perspective and stable investment budgets, the period of interest rates nearing their peak could present an opportunity to accumulate stocks deeply discounted relative to their intrinsic value," analysts from Rong Viet wrote in a strategy report published on the morning of 8/6.

Phuong Dong