VN-Index loses 40 points, 110 stocks hit floor prices

Vietnam’s benchmark VN-Index lost 39.85 points, or 3.34%, to 1,153.1 on Monday, with up to 495 stocks falling, including 110 hitting their floor prices.

The trading value on the Ho Chi Minh Stock Exchange (HoSE), represented by the index, hit VND23.5 trillion ($963.7 million), down 27% from Friday.

The VN30-Index, which tracks the performance of 30 largest cap stocks, lost 37.75 points to 1,159.94, with 26 losers. Of which, VIC of Vingroup, SHB of Saigon-Hanoi Bank, SSI of Saigon Securities, and GVR of Vietnam Rubber Group suffered the maximum decrease.

The plunge of the stock market was attributed to the State Bank of Vietnam’s (SBV) withdrawal of nearly VND20 trillion ($820 million) out of the banking system through the issuance of treasury bills on September 21-22.

In addition, amendments to the SBV’s Circular 06/2023 trigger concerns that restricting securities companies from accessing loans will make the market more difficult.

These pressures made the securities group face huge selling pressure, with a series of codes hitting their floor prices such as VND of VNDirect Securities, HCM of Ho Chi Minh City Securities, SHS of Saigon-Hanoi Securities, VIX of VIX Securities, APS of Asia-Pacific Securities, MBS of MBBank Securities, and VCI of Viet Capital Securities.

The red also overwhelmed other stock groups like banking, real estate, steel and construction.

Only some stocks closed in the green, including VNM of Vinamilk, VJC of low-cost airline Vietjet, NAS of Noi Bai Airport Services JSC, and BSR of Binh Son Refining and Petrochemical Company Limited.

Foreign investors turned net buyers on the HoSE to the tune of VND708 billion ($29 million) after net selling for five straight sessions. They mainly net purchased HPG of steel giant Hoa Phat, SSI, and VHM of real estate developer Vinhomes.

The HNX-Index on the Hanoi Stock Exchange, where mid and small caps list, plunged 4.79% to 231.5 points, while the UPCoM-Index on the Unlisted Public Companies Market fell 2.27% to 88.7.