In a recent post on his personal Facebook page, Nguyen Duy Hung, the Chairman of SSI Securities Corporation, shared his insights regarding the stock market's price levels following a sharp correction. He noted that many stocks have become appealing for long-term investors, particularly those who adhere to value investment principles.

This commentary comes in the wake of one of the most significant declines in the Vietnamese stock market this year. On July 22, the VN-Index dropped by 63.03 points, or 3.58%, closing at 1,668.53 points. This decline pushed the index below the psychological threshold of 1,700 points, exacerbated by widespread selling pressure across various sectors and large-cap stocks.

The liquidity on the HoSE reached over 23 trillion VND, indicating a substantial increase in selling activity. Foreign investors also contributed to the downward pressure by selling a net of approximately 1.921 trillion VND across the market, which has affected investor sentiment significantly.

As of late July, the VN-Index has already decreased by nearly 200 points, equating to about 10.6%. The gains achieved over the previous four months have almost been entirely erased, with many stocks experiencing declines that far exceed the overall index. Since reaching its peak on May 18, the VN-Index has lost nearly 260 points, or 13.4%. The market capitalization of the HoSE has also diminished by nearly 1.2 quadrillion VND, bringing it down to approximately 7.9 quadrillion VND. Overall, the Vietnamese stock market has seen a total loss of 1.3 quadrillion VND in market capitalization.

Hung's latest remarks come at a time when investors are debating the potential for the market to find a bottom after this steep decline. Given the current selling momentum, accurately predicting the market's equilibrium point is challenging. While selling pressure and risks associated with leveraged trading remain critical factors to monitor, the significant discounts on many stocks are beginning to attract the attention of long-term investors.

Additionally, the earnings season for the second quarter and the first half of the year is approaching its peak, and companies in sectors expected to report substantial profits could provide the support needed for the market to recover.