VN-Index plunges to 30-month low

By Nhat Huynh, Nguyen Tuong
Sun, October 2, 2022 | 8:47 am GMT+7

Vietnam’s benchmark VN-Index fell almost 12% in September compared with August, making it the exchange's biggest one-month drop in 30 months.

The index closed at 1,132.11 points Friday, the last day of September. Its September shrinkage brought the Vietnamese stock market into the group of the world's worst performers of the month.

The Ho Chi Minh City Stock Exchange’s (HoSE) capitalization narrowed by more than VND588 trillion ($24.64 billion) at the end of the month.

Many experts believe the market downtrend is set to continue. Photo by The Investor/Gia Huy.

Many experts believe the market downtrend is set to continue. Photo by The Investor/Gia Huy.

The State Bank of Vietnam increased regulatory interest rates by one percentage point on September 23, following the U.S. Federal Reserve’s rate hikes. This had a negative impact on the psychology of securities investors last week.

Right from the first trading session of the week, selling pressure increased and the Vietnam market went deep into the red. Trading sessions between Monday and Thursday remained in the red, but the VN-Index closed Friday six points higher than Thursday. For the whole week, the index dropped 71.27 points, down 5.9%.

Market liquidity in September also shrank significantly over August. The average matching value on HoSE was under VND11,900 billion ($498.6 million), down 16% against August; the second-lowest figure since the beginning of 2021, after this July.

This week, VIC of Vingroup, Vietnam’s largest private conglomerate, and VHM of Vingroup subsidiary Vinhomes exerted the most negative impacts as the duo removed more than 14 points in the VN-Index. They were followed by MSN of Masan Group, VCB of Vietcombank, GVR of Vietnam Rubber Group, and VNM of Vinamilk.

On the contrary, NVL, LGC, VHC and TCH of Novaland, CII Bridges, Vinh Hoan Corp., and Hoang Huy Group, respectively, were the tickers with the most positive impacts, but their contributions were not very high.

For the whole week, foreign investors continued to be net sellers on both HoSE and the Hanoi Stock Exchange, with a net value of VND978.66 billion ($41 million).

In September, foreign investors net sold more than VND3,000 billion ($125.7 million) on HoSE. On the contrary, they'd net bought about VND2,500 billion ($104.8 million) in the first eight months of the year.

In the opposite direction, securities firms were net buyers during the week, their purchases totaling VND1,688 billion ($70.7 million).

According to experts at broker Saigon-Hanoi Securitie (SHS), the Vietnamese securities market was under considerable pressure from the Fed's rate hikes during September, and the State Bank of Vietnam’s rate hikes. Exchange-traded funds (ETFs) were also under pressure of capital withdrawals as bonds in other countries became more profitable.

SHS noted that the market was still undervalued compared to the average value of the last five years. But the downtrend would likely continue in the short and medium term, it said.

Similarly, Vietcombank Securities is of the view that Friday’s result was likely a technical recovery, while the downtrend is set to continue. The broker’s team recommended that investors continue to wait patiently for the market to show signs of balance, and not rush to catch the bottom

MB Securities expert Hoang Cong Tuan said the Fed’s rate hikes had hit the investors' confidence, but he believed the Vietnamese market would become stable soon thanks to the Vietnamese economy’s healthy indicators.

Huynh Minh Tuan, founder of investment company FIDT, felt the current state was good to improve portfolios. Capital costs are on the rise, therefore investors are withdrawing money from the stock market. “Not a surprise,” he said.

Comments (0)
  • Read More
Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm

Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm

Summit Agro International Ltd., a member of Japanese conglomerate Sumitomo, has acquired a 49% stake in Hop Tri Investment Corporation, a leading crop protection firm in Vietnam.

Companies - Fri, November 22, 2024 | 8:25 pm GMT+7

E-wallets get thin as banking apps prosper in Vietnam

E-wallets get thin as banking apps prosper in Vietnam

E-wallets appear unable to compete strongly against online banking applications in Vietnam, several market observers say.

Banking - Fri, November 22, 2024 | 7:15 pm GMT+7

Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.

Companies - Fri, November 22, 2024 | 4:26 pm GMT+7

VinFast’s parent, PV Power partner to speed up charging station expansion

VinFast’s parent, PV Power partner to speed up charging station expansion

Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.

Companies - Fri, November 22, 2024 | 4:11 pm GMT+7

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.

Energy - Fri, November 22, 2024 | 2:59 pm GMT+7

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.

Finance - Fri, November 22, 2024 | 2:45 pm GMT+7

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.

Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.

Politics - Fri, November 22, 2024 | 11:29 am GMT+7

Thailand-invested food giant CP fined $31,000 for environmental violations

Thailand-invested food giant CP fined $31,000 for environmental violations

Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.

Companies - Fri, November 22, 2024 | 10:48 am GMT+7

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.

Finance - Fri, November 22, 2024 | 10:27 am GMT+7

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.

Finance - Fri, November 22, 2024 | 8:25 am GMT+7

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.

Energy - Thu, November 21, 2024 | 10:41 pm GMT+7

Indonesia, France step up cooperation in economy, defence

Indonesia, France step up cooperation in economy, defence

Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.

Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7

Thai economy to maintain upward momentum in 2025

Thai economy to maintain upward momentum in 2025

The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.

Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7

Former parliament chairman Vuong Dinh Hue warned for violations

Former parliament chairman Vuong Dinh Hue warned for violations

The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.

Politics - Thu, November 21, 2024 | 10:10 pm GMT+7

Sumitomo insists on building LNG power plant in central Vietnam

Sumitomo insists on building LNG power plant in central Vietnam

Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.

Energy - Thu, November 21, 2024 | 8:53 pm GMT+7