An investor consults a bank teller at a branch of Vietcombank in Hà Nội. The bank lost 3.2 per cent on Monday. Photo Vietcombank

 

Vietnam News reported that Vietnam’s stock market suffered a steep decline yesterday, as market sentiment was pressured by concerns about the current massive increase of the coronavirus across the country.

 

On the Hồ Chí Minh Stock Exchange, the VN-Index plunged 2.3 per cent to end on 1,298.86 points.

 

The markets were negative with 282 stocks declining while 101 stocks rose.

 

Investors traded nearly VNĐ25.8 trillion (US$1.36 billion), equivalent to a trading volume of 795 million shares.

The 30 biggest stocks tracker, the VN30-Index, slid by 2.65 per cent to 1,412 points.

 

Twenty-six of the 30 biggest stocks in the VN30 basket fell, while just three climbed and one ended flat.

The slump was mainly driven by a sell-off in bank stocks in the afternoon session.

 

Banking groups put the biggest pressure on the indexes, with Vietnam International Bank down 4.4 per cent, Liên Việt Post Bank losing 3.7 per cent, Vietnam Maritime Commercial Joint Stock Bank declining 3.2 per cent, Military Bank down 3.2 per cent and Vietcombank losing 3.2 per cent.

 

On the other side, securities stocks still advanced thanks to the support of a strong cash flow, with notable gainers such as FPT Securities Joint Stock Company and Hồ Chí Minh City Securities Corporation, Việt Capital Incorporation, SSI Securities Incorporation, Agribank Securities Corporation and APG Securities Joint Stock Company.

 

Hampering Economy

 

Worries about the COVID-19 Delta variant hampering economic growth persisted as cities and provinces have tightened restrictions to ensure social distancing measures are strictly followed.

 

“Big cities continue to have to tighten social distancing measures to contain the pandemic, which will affect economic growth in the last quarter of the year and the market is responding these concerns,” said Vũ Minh Đức, senior manager of the Research and Analysis Department at Việt Capital Securities.

 

“Besides, the VN-Index has broken the support levels of 1,360 points or 1,345 points, which would boost technical selling, creating more downward pressure on the market. “This week it is likely that the market will move in a downtrend, first testing the support area at 1,310 points of the VN-Index.”

 

On the Hanoi Stock Exchange (HNX), the index lost 0.95 per cent to close on 334.84 points.

 

During the trading session, more than 166.9 million shares were traded on HNX, worth over VNĐ3.9 trillion. — VNS

 

 

 

I am invested heavily in the VN30 via an investment fund. VN30 down by 5% over two days (20th, 23rd Aug.). Was hoping that the market would recover as U.S. markets often do the next day. After all, international markets recovered. But the index went up a miserly 0.44% on 24th August; what gives?