BizLIVE - Vietnam’s major stock market indexes ended in negative territory on Thursday as investors dumped shares across the board after recent strong rallies.
Selloffs Send Vietnamese Shares Diving Wednesday
Vietnamese shares plunged on selloffs.
The benchmark VN Index of the Hochiminh Stock Exchange dropped 2.66% to 1,034.69 at the close, the intraday low, marking the second consecutive drop. This was the biggest single-day decrease since April 22, 2016 when the index lost 2.91%.
The VN30 Index, comprised of the 30 largest stocks, plunged 3% while the VNMid Index declined 2.27%.
Investor sentiment became sour in the afternoon trade when selling pressure mounted rapidly on heavyweights, mid-cap and small-cap stocks. Hoa Sen Group led the losses when touching the floor. As many as 220 stocks headed south while 68 gained and 48 ended flat.
The biggest bluechips such as Vinamilk (VNM), Sabeco (SAB), Vingroup (VIC), PV Gas (GAS), and Vietcombank (VCB) pull the indexes down. On the contrary, Vincom Retail (VRE) and FLC Faros (ROS) bucked the trend, preventing the indexes from falling further.
Volume was heavy with 332.6 million shares worth 8.67 trillion dong ($381.8 million) traded, compared to 340.27 million shares, valued at 8.28 trillion dong on Tuesday.
Taking use of the selloffs, foreign investors were net buyers of 563.7 billion dong on the HOSE, focusing on VIC, HDBank (HDB) and VietJet Air (VJC).
Selling pressure increased, especially in sensitive sectors such as securities, banking, steel and real estate. This was the strongest decline in the last one year, BIDV Securities (BSC) analysts said in a note to clients.
“However, investors should not too worry when the market width was quite good and the liquidity remained high. BSC believed that after a long period of sharp increase, correction was necessary to create momentum for further gains,” they added.
The VN Index is expected to retest the support territory of 1,020-1,030, MB Securities said.