VN-Index plunges to 19-month low amid broad selloffs

Vietnam’s benchmark VN-Index dropped 22.92 points Wednesday, or 1.96%, to 19-month low of 1,143.62 points, due to broad selloffs of major stocks.

This was the fourth consecutive decrease of the index, which represents the Ho Chi Minh Stock Exchange (HoSE). The major bourse saw 366 stocks fall and 95 record gains.

Trading value hit VND11.78 trillion ($496 million) as 527.7 million shares changed hands during the session.

The market downturn matched projections of many local securities companies. Some experts said that given the low liquidity and investor caution, the index might further plunge in the next sessions.

Stocks that exerted most negative impact on the VN-Index included GAS with a 6.7% decline, Vingroup (VIC, down 5.7%), and Vinhomes (VHM, down 5.4%). VIC and VHM recorded the biggest drop in three months and in a year, respectively.

Other major stocks affecting the index were MSN, HPG, MWG, FPT, and GVR, all down by over 2.5%.

The bourse saw 30 stickers hit their floor prices and most of them had no buyers. Broad selloffs were recorded at TGG, AGM, NVT, CTD, HBC, and VCG.

Banking stocks VCB and VPB posted 1.5% gains, while securities stocks SSI, HCM, and VND climbed up between 1% and 1.7%.

Foreign investors were net sellers for the sixth consecutive session, with a net value of VND4.79 billion ($201,800).