On the 19th local time, the Vietnamese stock market suddenly collapsed. The Vietnamese benchmark stock index Ho Chi Minh Index (VN INDEX) closed down 5.11%, down 60.94 points to 1131 points, almost erasing all cumulative gains since January this year. According to Vietnam News Agency, this is the biggest drop in Vietnam's stock market in more than 20 years.
Image source: Yuetong News Agency Data picture
Due to the sharp increase in selling orders in a short period of time, the trading system of the Ho Chi Minh Stock Exchange was once squeezed to paralyzed, and the statistics on index, transactions and individual stocks were once stagnant, with a period of nearly 20 minutes.
According to the Vietnam News Agency, on that day, there were only 44 stocks rising in the market, 437 stocks falling in, and 98 stocks hit the limit. Banks, securities, oil and other sectors all fell sharply.
analysts pointed out that the main reason for the Vietnamese stock market plunge on the 19th is that the stock market has risen for 30 consecutive days, rising more than 120 points. It is not surprising that the market’s large-scale correction is not surprising. In addition, the Spring Festival holiday is early, retail investors have chosen to make profits and leave. Statistics show that since last week, Vietnamese retail investors have begun to sell their shares, with net sales of more than 1 trillion Vietnamese dong (about 280 million yuan), and this trend is expected to continue this week.
Since 2020, the Vietnamese government's continuous increase in economic revitalization measures and loose monetary policies have become one of the factors that led to the rise of Vietnam's stock market. Under the loose conditions, Vietnamese retail investors have entered the market at a low level, bringing huge incremental funds to the market. After the Ho Chi Minh Index approached 1,200 points, investors chose to make profits at high levels.
This stock market plunge has also caused people to worry about whether the Vietnam stock market is "bubble" burst. Some analysts in Vietnam pointed out that because the Ho Chi Minh Index's P/E ratio valuation has not yet reached its highest level, it is still quite cheap compared to many regional markets. Therefore, there is no "bubble" in the stock market now.
Vietnam stock market experienced severe fluctuations and closed slightly on Wednesday
Vietnam stock market After experiencing a sharp drop on Tuesday, the market experienced severe fluctuations in the morning trading after the opening on the 20th. However, the VN index still maintains its base of 1130 points. As the afternoon session entered, liquidity declined and the market was almost frozen. Many investors on the
forum complain that the system failure caused the order to be entered. Some investors say they want to sell their shares but can’t.
As of the close of the 20th, the VN index rose 3.68 points to 1134.68 points, up 0.33%, of which 209 stocks rose and 235 stocks fell. The total trading volume on that day reached 839.3 million units, a decrease of 15% compared with the previous trading day, with a total trading volume of nearly 18 trillion Vietnamese dong, or approximately RMB 500 million.
Source: CCTV Finance
