Vietnamese Stock Market Plunges After Record Surge
The Vietnamese stock market experienced a sharp downturn on Friday, August 22, following a period of record gains, with significant selling pressure pulling the VN-Index down by more than 42 points. According to analysts, this dramatic correction, while not erasing the broader uptrend from earlier in the week, could persist for a couple of sessions before the market achieves a new equilibrium. This sharp drop is seen by some, like Viet Dragon Securities, as a potential opportunity for investors to engage in profit-taking, narrow their portfolios, and reduce their overall equity exposure, while they await stabilization around key support levels. This sentiment was echoed by VPS Securities, which also forecasted that the VN-Index might test lower points in the immediate future before a balance is regained. At the market close on the Ho Chi Minh Stock Exchange, the VN-Index had fallen by 42.5 points to 1,645.47 points. The market breadth was overwhelmingly negative, with 275 stocks declining, including 24 hitting their floor prices, in stark contrast to just 76 gainers. Despite the widespread sell-off, liquidity remained exceptionally high, reaching nearly VNĐ62.14 trillion, indicating strong trading activity and a high volume of transactions during the downturn.
Large-Cap Stocks Drive Widespread Market Declines
The heavy selling pressure was particularly pronounced in the large-cap sector, with the VN30-Index, which tracks the 30 largest stocks by market capitalization and liquidity, shedding almost 61 points. Several major stocks hit their floor prices, including notable names like Vietnam Prosperity Joint Stock Commercial Bank (VPB) and Vietnam Rubber Group – Joint Stock Company (GVR). Other major players, such as Techcombank (TCB), Asia Commercial Joint Stock Bank (ACB), Military Bank (MBB), and Sacombank (STB), all experienced significant drops of between 4% and 6%. VPB and TCB were identified as the biggest contributors to the drag on the VN-Index. Trading volume saw a substantial spike in banking and steel shares, with SHB and Hoa Phat Group Joint Stock Company (HPG) leading the charge with more than 166 million and 132 million units traded respectively, though both closed sharply lower. Foreign investors were also net sellers for the session, divesting more than VNĐ1.3 trillion, with nearly VNĐ1 trillion of that amount coming from HPG alone. Other stocks like PetroVietnam Oil Corporation (OIL) and STB also saw significant capital outflows, contributing to the overall negative sentiment and market decline.
Rare Bright Spots and Impact on Billionaires’ Fortunes
Amid the widespread sell-off, a few large-cap stocks managed to provide some rare bright spots, helping to cushion the index from falling below the critical 1,630-point level. The Bank for Investment and Development of Việt Nam (BID) saw its shares rise by 2.84%, while Vietcombank (VCB) gained 1.87%. Other notable stocks like Vietnam International Bank (VIB) and Duc Giang Chemicals Group JSC (DGC) also advanced, defying the broader market trend. VDS Securities JSC (VDS) was a standout performer, even hitting its ceiling price. The market’s sharp decline also had a direct and swift impact on the net worth of some of Vietnam’s prominent billionaires. According to Forbes, Hòa Phát Chairman Trần Đình Long’s fortune dropped by a substantial US$143 million to $2.6 billion, while Techcombank Chairman Hồ Hùng Anh experienced a loss of $106 million, also bringing his net worth to an estimated $2.6 billion. Vingroup Chairman Phạm Nhật Vượng and Vietjet CEO Nguyễn Thị Phương Thảo both saw slight declines in their wealth, which are now estimated at $12.7 billion and $3.6 billion, respectively. Despite the steep plunge on Friday, the VN-Index still managed to close the week with an overall gain of more than 15 points, thanks to the strong performance earlier in the week. Looking ahead, market experts anticipate continued volatility in the coming sessions as investors consolidate their positions, with resistance expected around 1,660 points and a key support zone near 1,625 points.
