BizLIVE - Vietnam shares continued to plummet on Monday, marking the sharpest decline among Asian markets, as investors dumped shares across the board.
Vietnam Shares Plunge Most in Asia as Selloffs Go on
Movements of the VN Index on May 28. Chart: Bloomberg
The benchmark VN Index of the Ho Chi Minh Stock Exchange (HOSE) fell 32.15 points, or 3.34% to settle at 931.75 – the lowest since December 14, 2017. Today’s fall was the sharpest single-day percentage loss since May 7 when the gauge dropped 3.45%. The index lost 2.23% on Friday to end at 963.90.
Sentiment remained negative and investors entered panic in the last trading hours as selling pressure amounted on bluechips and brokerages called margin after recent deep falls.
Heavyweights, which led gains two months ago, suffered selling, selling the VN30 index plunging 4.09%. Nine out of the 30 stocks namely BID, CTG, FPT, GAS, MWG, ROS, SBT, STB, and VJC of the bluechip-weighed gauge hit the floor prices. The advance of Vingroup (VIC), the only gainer of the 30, prevented the VN-Index from deeper losses.
Volume was heavy with 219.28 million shares worth 6.06 trillion dong ($266.8 million) changed hands, compared to 150.25 million shares valued at 4.74 trillion dong on Friday.
Technically, the VN Index plunged below the 200-day moving average, indicating the long-term outlook becomes dimmer.
A series of tickers in the banking, securities and oil & gas sectors could not stand with selling pressure. Along with heavyweights, selloff of stocks in these sectors caused the indexes to fall, Artex Securities said in a note to clients.
“The downtrend is unlikely to end as margin call is predicted to continue to last in several days to come. Therefore, investors are advised to caution with buying in this period,” the brokerage added.