Over the past two days, the market valuation of Vietnamese shares slipped by some $14 billion to $160 billion.
Vietnamese Equities Plunge for Second Straight Day on Global Selloffs, Bottom-fishing Seen
Vietnamese shares have nosedived for a second straight day. Photo: Kiplinger
Vietnamese shares plummeted for a second consecutive day following selloffs in global markets, but bottom-fishing emerged in the last hour or so as investors reckoned the market has entered the overbought territory.
The benchmark VN Index of the Ho Chi Minh Stock Exchange (HOSE) settled down 3.54% at 1,011.60, the lowest since January 5. It was off from the intraday low at 983.06. The gauge dropped more than 6% during the day, the biggest single-day fall in history.
Panic continued to overshadow global and Vietnamese markets after major indexes of the U.S. stock market plummeted, with Dow suffering the steepest fall in history. The Nikkei 225 index closed down 4.73% while the Hang Seng lost 5.12% on Tuesday.
Selling overwhelmed Vietnamese markets, with almost large-cap stocks heading south, for example Vietcombank (VCB), Vinamilk (VNM), VietJet Air (VJC), BIDV (BID), FLC ROS (ROS), and PV Gas (GAS).
Volume was heavy with 480.7 million shares worth 15.17 trillion dong ($668.2 million) changed hands, compared to 282 million shares worth 8.3 trillion dong ($365.6 million) on Monday. Foreigners were net buyers of nearly 90 million shares of VRE by put-through transaction.
Foreign investors today net bought 4.56 trillion dong ($200.7 million) on the HOSE, mostly Vincom Retail (VRE), infrastructure developer CII, and Sacombank (STB). In addition, they bought a net 96.05 billion dong on the Hanoi Stock Exchange.
Over the past two days, the market valuation of Vietnamese shares slipped some $14 billion to $160 billion.
After two strong losing sessions, many accounts have fallen into the “call margin” status, which may force the selling pressure to increase, analysts at BIDV Securities (BSC) said in a note to clients.
 “The market will likely continue to shake sharply, although there were signs of recovery at the end of the session but the indexes were deeply decreased,” they added.