Market plunges due to intense selling pressure across the board

The Vietnamese stock market experienced a significant downturn on Monday, with the VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closing at 1,624.53 points, down 2.55%. This marks the biggest drop in several weeks for the VN-Index, and the index is now at its lowest since August 25 after a brief recovery period.

The banking group experienced intense selling pressure, with all stocks closing below their reference prices. Notable declines were seen in VPBank and Eximbank, which hit the floor prices, while Vietcombank, BIDV, and Vietinbank experienced moderate declines. Foreign investors returned to the market, net buying nearly VND1 trillion on the HoSE, providing some support to the market amidst the turmoil.

The VN30-Index, tracking the 30 biggest stocks on HoSE, saw a significant drop of 2.07%. A total of 26 ticker symbols decreased in the VN30 basket, while only one ticked up and three stayed flat. The HNX-Index on the Hanoi Stock Exchange fell by 3.24%.

The decline was not limited to the banking sector. Real estate stocks took a hit, with declines exceeding 5% for Novaland, Phat Dat Real Estate Development JSC, Ho Chi Minh City Infrastructure Investment JSC, 577 Investment Corporation, and TTC Land.

However, not all sectors followed the downward trend. Dat Xanh Group, An Gia Real Estate Investment and Development Corporation, and some other stocks managed to diverge from the general pattern.

In Ha Noi, the stock market also experienced a significant decline. Several securities stocks saw gains in the morning but plummeted in the afternoon, with Tien Phong Securities Corporation, VIX Securities Company, Viet Dragon Securities Corporation, and SSI Securities Corporation logging the biggest daily loss.

Liquidity on the southern bourse remained high at nearly VND53.2 trillion (US$2 billion). Despite the declines, Vingroup, Vinhomes, and Vincom Retail remained unchanged.

Many analysts predict that the VN-Index may continue to fall, although the name of the analyst who made this prediction remains unclear. This news comes as a blow to investors who have been hoping for a recovery in the Vietnamese stock market.