Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for military industry professionals · Monday, May 20, 2024 · 713,153,630 Articles · 3+ Million Readers

Market plunges, HOSE's value evaporates $10 billion

VIETNAM, April 15 - HÀ NỘI — Việt Nam’s stock market unexpectedly plummeted on Monday amid growing investors’ anxiety over volatility in both domestic and international markets.

The market capitalisation on the Hồ Chí Minh Stock Exchange shrank by VNĐ244 trillion (about US$10 billion) to reach nearly VNĐ5 quadrillion ($200 billion) as the benchmark VN-Index lost almost 60 points, or 4.7 per cent, to close at 1,216 points. This marked the sharpest decline in the index score in nearly two years since May 12, 2022.

On the Hà Nội Stock Exchange, the HNX-Index also decreased by 4.8 per cent to end the day at 229.71 points.

The market condition was pessimistic with 647 stocks sinking, 157 of which hit the floor price, while only 75 increased.

Liquidity grew significantly with the put-through trading value reaching over one billion shares worth VNĐ24 trillion on the HCM City’s exchange while those numbers in Hà Nội’s market were 164 million shares and VNĐ3.5 trillion.

According to Nguyễn Thế Minh, director of Yuanta Vietnam Securities Co.’s analysis department, the risk of a decline appeared since the beginning of April, but such a big shock on Monday caught investors by surprise.

Minh noted that the Israel-Iran conflict had global repercussions, impacting the Vietnamese stock market. However, he emphasised that the reaction level would likely be less significant, given Israel's restrained response, which has diminished the risk of the conflict escalating further.

Domestically, Minh has warned of rising exchange rates' inflationary pressure, hinting at potential interest rate hikes by the State Bank of Vietnam to stabilise liquidity. Decreasing market liquidity, coupled with cautious investor sentiment, compounds market instability.

He predicted the VN-Index may dip to 1,200-1,210 points. Despite a sudden drop, Yuanta’s expert expected bottom-fishing investors to enter the market soon, attracted by stocks' appeal amid difficulties in other investment channels and a large awaiting cash flow.

"VN-Index is unlikely to drop below 1,200 points as the risk isn't significant enough to prompt such a deep downward trend. For investors still holding stocks without margin pressure, selling off isn't advisable. Those with ample cash reserves should wait for the 1,200-1,210 range to explore buying opportunities cautiously," Minh was quoted on antt.nguoiduatin.vn.

Regarding trades by foreign investors, the sector saw consistent net selling of nearly VNĐ1.3 trillion in HCM City’s market, with selling focused on Vinhomes (VHM) with net sell value of nearly VNĐ268.5 billion, Vietinbank (CTG) with VNĐ208 billion, Saigon Securities (SSI) worth VNĐ83.7 billion, and Vinamilk (VNM) worth VNĐ73 billion.

Conversely, foreign investors net purchased nearly VNĐ56 billion on the Hà Nội’s exchange. — VNS

Powered by EIN Presswire
Distribution channels:


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release