Vietnam market may continue to correct this week

HANOI: The Vietnamese stock market is experiencing turbulence characterised by substantial downward adjustments, heavily influenced by large-cap stocks from the Vin group.

On the Ho Chi Minh Stock Exchange last week, the VN-Index reported only a single increase, followed by four consecutive declines, closing the week down at 1,646.89 points.

For the week, it lost 94.43 points, or 5.42%.

This sharp decline made the VN-Index one of the worst-performing stock indices globally.

Specifically, during the last trading session, the index lost 52 points, or 3.06%, demonstrating a stark contrast to the upward movements seen in most other Asian markets, which reported gains of between 0.5% and 2%.

Similarly, the HNX-Index on the Hanoi Stock Exchange posted losses, ending the week at 250.09 points, down 10.56 points or 4.05%.

The VN-Index’s downturn defied earlier predictions from many analysts that anticipated technical adjustments would be followed by a rebound to previous highs around 1,766 points, driven by active foreign investors and positive domestic sentiment.

Instead, the market witnessed a cautious flow of capital, with the average trading value per session dropping to about 20.3 trillion dong or about US$771mil, 15% lower than the week prior.

Notably, one session recorded trading volume of only 16.2 trillion dong, marking the lowest level in six months.

Several factors contributed to the significant decline.

First, increases in short-term deposit interest rates by banks negatively impacted investor sentiment towards the stock market.

Foreign investors also resumed heavy selling after a week of net buying, leading domestic participants to become pessimistic about short-term prospects.

Additionally, the market typically experiences a slowdown towards the year’s end, compounded by a lack of positive information. — Viet Nam News/ANN