Mar 12, 2020 / 16:19

Vietnam shares nosedive to 2-1/2-year low on global losses, pandemic fears

The Hanoitimes - The positive signal during today’s trade was even the appearance of bottom-fishing demand that helped the VN-Index rebound from its intraday low

Vietnam shares suffered another wave of broad-based selloffs on March 12 as investors across the globe dumped shares on risk-off mode after the World Health Organization declared the coronavirus a pandemic and the US imposed a Europe travel ban.

The performance of the VN-Index on March 12. Source: Bloomberg

The benchmark VN-Index of the Hochiminh Stock Exchange closed down 5.2% to 769.25, the lowest since August 23, 2017, off from its intraday low of 762.3.

Trade was robust with 339.23 million shares worth VND5.22 trillion (US$224 million) changed hands. At the close, 53 stocks gained, 26 stayed flat, and 344 lost, including 117 that touched floor prices.

The VN-30 Index, comprised of the 30 largest and most liquid tickers, also fell 5.14% to 719.21, with 29 constituents going south at the close.

 Source: SSI

Sentiment went sour after the markets opened after the US stock market entered the bear territory on March 11. The WHO on March 11 tagged the coronavirus outbreak a pandemic for the first time since 2009.

Vietnam has confirmed the 39th case infected with SARS-CoV-2, which is also the fifth case in Hanoi.

Besides selling pressure from foreign players, margin call dampened further investor sentiment.

The VN-Index plunged 6.28% on March 9, the deepest fall in the last 19 years. Since that day, the gauge has lost 13.7%.

The positive signal during today’s trade was even the appearance of bottom-fishing demand that helped the VN-Index rebound from its intraday low.