VN-Index drops for fifth consecutive day despite strong economic data

Vietnam’s benchmark VN-Index dropped 17.55 points Thursday to 1,126.07, despite newly-released data showing the country’s nine-month GDP growth hitting 8.83%, a record high in 12 years.

This was the fifth consecutive drop in the index, which represents the Ho Chi Minh Stock Exchange (HoSE). The major bourse saw 347 stocks fall, including 30 hitting their floor prices, and 118 making gains.

Trading value hit VND11,230 billion ($471 million) as 491.47 million stocks changed hands.

Despite active buying in the morning, selling pressure mounted throughout the day, pushing the index down.

Vingroup (VIC) exerted the most negative impact on the VN-Index, dropping 5% to VND54,600 ($2.29) per share.

Construction stocks CTD and VCG hit their floor prices and had no buyers. Many banking, securities, insurance stocks decreased by about 3%.

Foreign investors were net sellers for the seventh consecutive session, with a net value of VND158.75 billion ($6.66 million).

So far this year, the total market capitalization of the HoSE, the Hanoi Stock Exchange (HNX) and the Unlisted Public Company Market (UPCoM) has shrunk by $74 billion.

Vietnam’s economic growth of 8.83% year-on-year in the first nine months is the highest recorded in 12 years.

The figures for the same period in 2021 and 2020 - both pandemic years, were 1.42% and 2.12%, respectively. The economy expanded 2.58% last year.