The market rallied on Feb. 4 but investors remained anxious as the deadly virus claimed more lives.
The selloff in Vietnam’s stock market continued for the third consecutive day on Feb. 3, leading to the benchmark VN-Index losing 4.7% 30 minutes after the opening on to below 900, the lowest since the end of 2017.
The stock market rallied on Feb.4, with VN-Index being down 2.61 points at 925.53 in the morning session.
Vietnam’s stock exchange was affected after the Asian markets have been hit hard amid lingering worries over the spread of the new coronavirus.
Asian markets rallied on Feb. 4, with Shanghai bouncing back as bargain-buyers stepped in after the previous day's rout, but trading floors remained anxious as China's deadly virus claimed more lives.
As of Feb. 4, Vietnam reported nine cases of nCoV infection. Schools in some 40 cities and provinces nationwide have been temporarily closed while halt on festivals have been requested after the Prime Minister declared the 2019 nCoV an epidemic in Vietnam.
The deadly virus originating from Wuhan has now spread 27 countries and territories worldwide, with more than 20,600 confirmed cases on February 4.
In its latest report, securities firm VNDIRECT considered nCoV a “black swan” event, which has a major impacts on short-term but is unlikely to change a full economic cycle.
After strong fluctuations, Vietnam's stock market has showed signs of stability, with stocks being no longer sold strongly. However, the cautious psychology of investors, both sellers and buyers, led to low cash flow into the market./.VNA