The VN-Index fell more than 43 points in the first trading session of the week, reaching its lowest point since early April. The index, which represents the Ho Chi Minh City Stock Exchange, traded in the red throughout the session, with the decline widening significantly. At one point, the index dropped by 54 points, nearing the 1,730-point mark.

Despite a late surge in buying activity in the final 15 minutes, it was not enough to reverse the trend, and the index closed at 1,743 points, marking a decline of over 116 points or 6.2% from earlier in the month. The VN30 index, which tracks large-cap stocks, also suffered, losing more than 44 points and breaking through several key support levels, including the psychological barrier of 1,900 points.

According to analysts from MB Securities, the stock market is currently affected by banks maintaining high deposit interest rates to retain liquidity amid tightening system liquidity. High interest rates and limited liquidity are increasing pressure on corporate profits, especially in sectors with significant financial leverage. The analysts noted, "The spillover effects are evident in the market. Although stock valuations are attractive, weak cash flow is resulting in sluggish trading liquidity and unpredictable short-term volatility."

Many securities firms agree that the current market valuation is attractive, lower than the 10-year average, but it has not been sufficient to attract short-term capital. Analysts from ACB Securities stated that the 1,770-point level is crucial for determining short-term trends. If this level is lost, the adjustment pressure could extend further, potentially down to 1,630 points.

In the first trading session of the week, over 260 stocks on the Ho Chi Minh City Stock Exchange closed below reference levels, approximately six times the number of stocks that increased. The market recorded 33 stocks hitting the floor price, including SHB, which dropped to 11,800 VND with more than 1.1 million shares available for sale.

In terms of sectors, securities stocks were the hardest hit, with all closing below reference prices. Stocks such as VIX, VDS, and BSI ended at their floor prices. Other stocks like ORS, VND, VCI, and VPX also experienced significant declines but managed to reduce their losses later on. The real estate sector saw several stocks hit the floor, including DXG, DXS, CII, QCG, and DIG. Major developers like Nam Long, Phat Dat, Khang Dien, and Novaland all saw their stocks decline by 1.5% or more. Vinhomes also significantly impacted the market, dropping 2.6% to around 137,000 VND.

In the banking sector, aside from SHB, mid and small-cap stocks such as VBB, OCB, and KLB fell by over 5%. Major stocks like VCB, CTG, BID, MBB, TCB, and VPB all lost more than 3%, despite positive forecasts for their mid-year business results. LPB was the only bank stock to defy the trend, rising 1.1% to 53,500 VND.

Despite oil prices soaring above $90 per barrel, all oil and gas stocks ended in the red, with PVT and GAS experiencing the most significant declines of 6.1% and 4.1%, respectively. PNJ continued to face strong selling pressure, losing an additional 4.7% to 41,000 VND, marking a 35% drop since issues arose with its subsidiary, P-Lab.

The widespread selling pressure pushed liquidity on the Ho Chi Minh City Stock Exchange to nearly 20 trillion VND during the first session, a sharp increase from 11.6 trillion VND at the end of the previous week. HPG was the only stock to exceed 1 trillion VND in trading volume, followed by SHB, SSI, and VIX.

Foreign investors extended their net selling streak to six consecutive sessions, although the outflow pressure from this group appears to be weakening. Analysts from MB Securities recommend that investors adopt a selective accumulation strategy rather than speculative trading in the current context. They suggest considering investments when the index returns to the 1,760-1,780 point range with better liquidity than currently observed.