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VN-Index clocks worst day in two months as blue chip stocks tumble

Friday, 27/10/2023 | 09:32:36 [GMT +7] A  A

Vietnam’s benchmark VN-Index plunged 4.19% Thursday, its worst decline in a single day since August 18.

VN-Index clocks worst day in two months as blue chip stocks tumble
An investor looks at stock prices on a screen at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh TranVietnam’s benchmark

The index is now at 1,055.45 points, the lowest since early May, with 90% of 560 tickers falling. It has fallen 15% from its peak of 1,245 points established in early September.

In one of its worst-trading days this year, the VN30 basket, which comprises Vietnam’s biggest stocks, lost over 48 points, or 4.34%.

The VN30 saw six tickers hitting the floor with a decline of around 7%, including VIC of private conglomerate Vingroup and its subsidiaries VHM of property giant Vinhomes and VRE of retail real estate arm Vincom Retail.

Vingroup said that on Wednesday it completed a sale of $250 million international bonds, which allows investors to exchange for Vinhomes shares owned by Vingroup. The bonds are set to mature in 2028.

Some investors, however, sold their Vinhomes shares on Thursday morning as part of their strategy to limit risk. Their action, known as hedging, was performed in a limited number of shares and there was no dilution.

Vingroup said that the impact of the share sale would be short-term.

Other blue chip stocks that hit floor prices were MSN of conglomerate Masan Group, PLX of fuel distributor Petrolimex and GVR of Vietnam Rubber Group.

Trading on the Ho Chi Minh Stock Exchange, on which the index is based, increased by 111% to VND23.243 trillion ($944 million).

Foreign investors were net sellers to the tune of VND104 billion, mainly selling VHM and SSI of leading brokerage SSI Securities Corporation.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, plunged 5.30% while the UPCoM-Index for the Unlisted Public Companies Market closed 3.25% lower.

Source: VnExpress