VN-Index drops to 20-month low amid global downturn

Vietnam’s benchmark VN-Index closed Thursday at 1,074.52, down 29.74 points or 2.69% to a 20-month low, influenced by the global market downturn.

The index continued its downtrend after a Wednesday rebound. In total, 429 stocks lost, with 58 hitting their floor prices, and just 60 recorded gains. Twenty-eight of 30 bluechip stocks dropped Thursday.

Trading activities were moderate with 545.82 million shares worth VND11.12 trillion ($465.7 million) changing hands. Foreigners were net sellers on the Ho Chi Minh City Stock Exchange (HoSE) with a net value of VND131.66 billion ($5.51 million)

On Wednesday, the State Securities Commission, the stock market watchdog, warned against risks of trading via unlicensed applications like Passion Invest, Finhay, Tikop, Infina and Savenow, affecting investor sentiment.

Brokerage VNDirect said in a new report that possible interest rate hikes at banks in Vietnam and appreciation of the U.S. dollar versus the Vietnamese dong due to the U.S. Federal Reserve's interest rate hikes were two challenges facing the stock market.

It predicted that the VN-Index would move between 1,050 and 1,150 points this month and advised investors to exercise caution.

The Dow Jones, S&P 500 and Nasdaq went down Wednesday by 0.14%, 0.2% and 0.25%, respectively.