70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam stock market falls to deepest slump yet amid new Covid-19 outbreak
Nguyen Tung 17:23, 2021/01/28
Market capitalization on the HoSE, home to majorly large-caps, dropped around US$11.78 billion.

The benchmark Vn-Index today [January 28] witnessed its deepest slump yet with a fall of 73.23 points, or 6.67% against the previous trading session, to 1,023.94.

 Vn-Index falls of 73.23 points to 1,023.94 at the end of today's trading session. 

Such chaos occurred on the same day that Vietnam confirmed 82 community cases of Covid-19, ending a streak of 55 consecutive days with no local transmissions.

Meanwhile, foreign investors remained a spotlight of a gloomy trading day as net sellers in both three stock exchanges of Hanoi Stock Exchange (HNX), Ho Chi Minh City Stock Exchange (HoSE), and the Unlisted Public Company Market (UPCoM) with a combined transaction value of VND560 billion (US$24.24 million), focusing on bluechips such as HPG, FPT, VHM, ACB, CTG, STB and VIC.

It is estimated that the market capitalization on the HoSE, home to majorly large-caps, dropped around US$11.78 billion, when as many as 478 tickers went down, 276 of which hit their floor prices, versus 20 gainers, while 12 others stayed still.

Banking expert Nguyen Tri Hieu told Hanoitimes while the Covid-19 resurgence may be a major factor that trigger a wave of sell-off in the stock market, especially from new and inexperienced investors, or F0, the issue runs rather deeper than that.

“In 2020, the stock market may be overheated that went on from 800 to nearly 1,200, but economic fundamentals have not improved as expected,” he said.

While Vietnam remains a few countries with a positive economic growth of 2.91%, this was still its 10-year low growth rate, not to mention the large number of enterprises going bankrupt last year as a result of Covid-19, he noted.

“Whether the economy is in a better condition compared to the past or not is still debatable, but the fact that stock market still went from strength to strength is a concern,” Mr. Hieu asserted.

“The stock market may continue to face correction phase in next few trading sessions,” he concluded.

Meanwhile, Hai Yen, an individual investor (Tay Ho district, Hanoi) decided to stay away from the sell-off.

“I became an investor in the stock market when the Vn-Index reached its rock-bottom of around 600 in March, and not long ago the index nearly surpassed its all-time high [1,204],” she explained to Hanoitimes.

“It is possible that the market would quickly rebound once the government puts the Covid-19 resurgence under control,” Mrs. Hai Yen suggested.

RELATED NEWS
TAG: Vietnam stock market Covid-19 pandemic HOSE VN-Index outbreak resurgence market capitalization
Other news
16:31, 2024/02/15
Vietnam’s corporate bond market could grow to US$100bn: Finance Minister
The Ministry of Finance is expected to establish a separate bond market, strengthen inspection and auditing, and create conditions for businesses to raise capital.
20:08, 2024/02/14
Vietnam’s banking sector set to turn the corner in 2024
The fact that the Vietnamese dong depreciated by a modest 2.9% year on year in 2023 indicated high stability and improved foreign exchange reserves compared to the end of the previous year.
14:02, 2024/02/02
Vietnamese Gov’t remains steadfast in upgrading stock market to emerging status by 2025
The Ministry of Finance is expected to ease pre-transaction deposit requirements for foreign investors this year.
12:06, 2024/01/31
USD/VND exchange rate set to stabilize in second half of 2024
The central bank achieved some success in managing the foreign exchange market as the USD/VND exchange rate maintained a sliding rate of about 3.1% in 2023, despite some periods approaching the VND24,800 threshold.
11:04, 2024/01/22
Foreign capital expected to return to Vietnam’s stock market
If the stock market is upgraded to emerging status, the potential influx of foreign capital could range between $5 and $8 billion.
13:08, 2024/01/09
PM calls on banking sector to meet economy's capital needs
The main goal of the banking sector is to support economic growth while controlling inflation, contributing to the stability of the macro-economy, the monetary and foreign exchange markets, and financial security.