VIX leads proprietary trading sell-off as VN-Index drops 1.7%

Overview

On the first trading session of the week (September 7), proprietary trading desks at securities companies net sold VND 210 billion on HoSE, with VIX leading the sell-off at VND -91 billion. The VN-Index fell 31.44 points (-1.70%) to 1,821.64, reversing part of the prior three-week rally. Foreign investors also net sold approximately VND 459 billion, adding to the negative sentiment.

Key Facts

• VIX was the top net sell by proprietary desks, with net selling of VND 91 billion.
• Other notable net sells: MCH and VPB each -VND 34 billion, STB and FPT each -VND 24 billion.
• Additional net sells: HDB (-VND 22 billion), MBB (-VND 21 billion), VIC (-VND 19 billion), VRE (-VND 13 billion), NLG (-VND 12 billion).
• MWG was the top net buy by proprietary desks, with net buying of VND 52 billion.
• Other net buys: FUEKIVFS (VND 17 billion), E1VFVN30 (VND 14 billion), VIB and VHM (each VND 10 billion), BID (VND 7 billion), DCM (VND 6 billion), VNM (VND 4 billion), SSB and VGC (each VND 2 billion).
• Foreign investors net sold approximately VND 459 billion on HoSE.
• VN-Index closed at 1,821.64, down 31.44 points (-1.70%).

What Happened

On September 7, the Vietnamese stock market experienced a sharp correction after three consecutive weeks of gains driven by large-cap stocks. The VN-Index had approached the 1,880-point level but faced selling pressure in the morning session, which intensified in the afternoon. The index closed at 1,821.64, down 1.70%.

Proprietary trading desks of securities companies were net sellers of VND 210 billion on HoSE. The largest net sell was in VIX, with a value of -VND 91 billion. Other significant net sells included MCH and VPB (each -VND 34 billion), STB and FPT (each -VND 24 billion), and HDB (-VND 22 billion). On the buying side, MWG was the top net buy with VND 52 billion, followed by FUEKIVFS (VND 17 billion) and E1VFVN30 (VND 14 billion).

Foreign investors also contributed to the negative sentiment, net selling approximately VND 459 billion on HoSE. The data reflects a broad risk-off mood in the market, with both domestic proprietary desks and foreign investors reducing exposure.

Market Context

VIX, listed on HOSE, closed at VND 13,600 on September 7, reflecting the day’s decline. The broader market, as measured by the VN-Index, fell 1.70% to 1,821.64, pulling back from recent highs near 1,880. The sell-off was broad-based, affecting sectors such as securities, consumer staples, banking, technology, and real estate. The net selling by proprietary desks and foreign investors suggests a cautious stance amid valuation concerns after the recent rally.

Strategic Significance

For VIX, the heavy net selling by proprietary desks may reflect profit-taking or a short-term negative view on the stock, which is part of the securities sector. The sector is sensitive to market turnover and sentiment. The broader market correction, coupled with foreign net selling, could signal a period of consolidation. Long-term investors should consider whether the recent gains are sustainable, especially given the strong performance of large caps in the prior weeks. The data indicates that institutional players are trimming positions, which may precede further volatility.

What to Watch

• Subsequent trading sessions: Monitor whether proprietary desks continue to sell VIX or if buying interest emerges.
• Foreign flow data: Track daily foreign net buying/selling on HoSE to gauge sentiment.
• VN-Index support levels: Watch if the index holds above the 1,800-point level or breaks lower.
• Q3 earnings reports from VIX and other securities companies, due in October, for fundamental guidance.
• Any regulatory or policy announcements from the State Securities Commission that could affect market sentiment.