BizLIVE - Vietnamese shares have erased gains since the start of this year as selloffs amounted.
Vietnam Shares Plunge to Nearly 5-month Low, Erase YTD Gains
Movements of the VN Index on May 22. Chart: Bloomberg
The benchmark VN Index of the Ho Chi Minh Stock Exchange plummeted 2.86% to 985.91 on Tuesday, marking the lowest since December 29, 2017 as investors dumped shares across the board amid a lack of supporting news.
With today’s fall – the most from a 3.3% decline on April 26, the gauge has lost all the gains recorded since the start of this year. It has lost 19% from the all-time high recorded on April 9.
Sentiment became sour in early trade as selling pressure increased at heavyweights such as Vingroup (VIC), BIDV (BID), Bao Viet Holdings (BVH), Masan (MSN), Vinamilk (VNM), and VietJet Air (VJC).
Notably, VIC dropped to the lower limit for the second straight day, hitting 106,400 dong a share at today’s close.
Selloffs caused the VN30 Index, which tracks the 30 largest and most liquid stocks, fell 3.84%, the sharpest among indexes of the main bourse.
Liquid increased versus Monday but remain moderate, with 180.48 million shares worth 5.21 trillion dong ($229.77 million).   
Foreign selling worsened investor sentiment. Overseas traders net sold 586.8 billion dong today, following a net sale value of 439 billion dong on Monday.
Bui Nguyen Khoa, head of macro research at BIDV Securities, said the VN Index may further slip to 950-970 before recovering toward the weekend. Margin lending, which has eased considerably, was not behind selloffs today.