Vietnamese Stock ‘evaporated’ over 37 billion USD after 3 months

The Covid-19 plague caused the indices to plummet and the stock market capitalization to evaporate rapidly.

Vốn hóa thị trường chứng khoán đã sụt giảm mạnh sau 3 tháng /// Ảnh: Đ.Ngọc Thạch

The VN-Index closed this week’s session at 696.06 points, down nearly 28% from the 960.99 points of the last session of 2019. Even, in the last 24.3 session, the VN-Index was only 659 points. , 21 points, the lowest after more than 3 years, equivalent to market capitalization on Ho Chi Minh City losing over 860,000 billion. Overall, Vietnam’s stock market after the first 3 months of the year, capitalization has evaporated more than 886,420 billion VND, equivalent to 37.4 billion USD.

The strong fluctuations of Vietnam’s stock indexes were mainly influenced by the complicated movements of the Covid-19 epidemic. At the same time, the global stock market goes down negatively affecting investor sentiment. Besides, the continuous net sales of foreign investors also made many domestic individual investors worried. In the last week of March alone, foreign investors continued to be net sellers with 80.6 million units and net selling value of VND 1,500 billion. This is the 9th consecutive net selling week of foreign investors and it is estimated that only on Ho Chi Minh City floor, foreign investors have net sold more than 10,270 billion dong.

According to KIS Vietnam Securities Company, the last 2 months of strong plunge have pulled the indexes to the lowest level in 5 years. The company believes that this economic downturn is unlikely to develop into an economic recession, so VN-Index is expected to close in 2020 in the area of ​​720 – 840. However, KIS also thinks that the profits of businesses. The industry will be very disappointing in the first half of 2020 but will recover significantly in the second half. Vietnam will be one of the few countries to recover quickly and strongly from the epidemic thanks to the young and dynamic labor force, strong domestic consumption and no significant debt bubbles.

Stocks in many places also went down despite the recent economic support packages launched by many countries. US stocks closed at the end of the week 27.3 in the red because investors focused on the outbreak of Covid-19 when the US became the country with the highest number of cases in the world. Therefore, the record of more than 2,000 billion USD stimulus package signed by President Donald Trump on March 27 also does not help investors to be assured.

The Dow fell 4.06%, to 21,636.78 points; The S&P 500 fell 3.37% to 2,541.47 points and the Nasdaq Composite fell 3.79% to 7,502.38 points. Although these indices have risen sharply by 9.1-12.8% during this week, they are still about 20% lower than the highs set in February and well below the end point of 2019.

Source: thanhnien.vn

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