Bluechips drag VN-Index down by 16 points

Vietnam’s benchmark VN-Index went down 16 points Monday as large-cap stocks fell deeply, including banking codes like VCB, TCB, and VPB.

The index, which represents the Ho Chi Minh Stock Exchange (HoSE), moved on contrary to the rally at the end of last week.

Sell-off began within the VN30 basket, comprised of the 30 largest stocks by market cap and liquidity on HoSE, then expanded.

Three codes VIC, VHM and VRE – related to Vietnam’s largest listed conglomerate Vingroup – lost more than 5% at times Monday, causing the index to drop 10 points.

Many large-cap bank codes such as TCB, TPB, and VPB also dropped simultaneously and lost over 3.8% compared to the reference.

The selling pressure only cooled down in the session that finalized the closing prices. Cash flow disbursed to VIC helped the stock narrow down the drop. VNM, SAB, and BVH also saw the same similar changes, while some codes like PLX and SSI reversed from decreases to increases.

Backed by the moves, the index closed at 1,155, losing 16 points. Since the beginning of July, this is the third session that the index recorded a sharp drop of over 1%.

HoSE on Monday had 319 stocks closing below reference. Seven out of 10 stocks hitting the index adversely were ones of banks, namely VCB, TCB, VPB, BID, MBB, VIB, and CTG. Stocks of securities, steel and fertilizer companies also showed red.

In the group of green stocks, small and medium-cap codes like DIG, GEX, KBC became the market drivers. Stocks of two agricultural companies HAG and DBC were also in the group of 10 stocks that positively influenced the VN-Index as both hit the ceiling.

Market liquidity improved slightly compared to the last session of the week, reaching VND11,500 billion ($492.47 million). SSI was on top with more than VND530 billion ($22.7 million) matched.

Foreign investors on Monday spent VND694 billion ($29.7 million) on purchases and sold stocks worth VND688 billion, a little lower than spending. VNM, MWG, FPT, and PNJ were the most purchased stocks by them.

The Ministry of Public Security said Monday it is probing nine individuals for allegedly reporting that “Pham Nhat Vuong, chairman of Vingroup, was banned from leaving the country”.

It stated that the information posted on social networks about preventive measures imposed on the Vingroup (VIC: HoSE) chairman is incorrect.