return icon Vietnamnet.vn

Vietnamese stock market loses $20.2 billion in first half of November

As of the end of November 14, the market benchmark VN-Index was the world's worst performance index in a week, a month, a quarter, six months, a year, since the beginning of the year, and from the peak.
Global stock indices movements as of November 15. — Photo countryeconomy.com

The Vietnamese stock market has just closed the first half of a rough November with a forgettable session. Selling force weighed on most of the industry groups, with the whole market recording nearly 400 stocks hitting floor prices.

The market benchmark VN-Index finished November 15 at 911.9 points, a decline of 3.1 per cent from the previous day's level. This was the lowest in more than 25 months since October 5, 2020.

A drop of 3.1 per cent made the country's stock market the biggest loser in Asia on November 15. Most of the major markets in the region such as Japan, China, and South Korea, have recovered well recently. However, the positive effect did not influence the Vietnamese stock market, according to cafef.vn.

Since the beginning of November, the benchmark has lost another 116 points, equivalent to a decrease of 11.3 per cent. The losses were approximately the fall of the whole September, when the index dipped the most in 31 months since it hit the bottom during the COVID-19 pandemic period.

The market was even the world's worst performance index in a week, a month, a quarter, six months, and a year, since the beginning of the year, and from the peak.

The sharp fall since the beginning of November causes the market to lose VND463 trillion (US$19.6 billion) in market capitalisation on the Ho Chi Minh Stock Exchange (HoSE). In just half a month, the market dropped more than VND500 trillion in market capitalisation on three exchanges. Compared to the peak in early April, the loss even reached nearly VND2.68 quadrillion.

The market was in a bear state amid a wave of margin calls of many real estate business leaders, casting a shadow on many stocks. The sell-off activities created a domino effect, causing a number of stocks to hit floor prices.

Despite the strong corrections, bottom-fishing demand remains weak as a part of cash flow has been disbursed to production. Higher interest rates also stimulated more investors to shift to less risky assets like bank savings. Moreover, the tightening management of corporate bond issuance activities and limited credit room somewhat affected the stock market's sentiment.

Looming sentiment dragging the market's liquidity to the lowest level since the beginning of 2021 with the average matching value on HoSE less than VND8.7 trillion. There are no longer billion-dollar trading sessions like the boom period one year ago, but more and more sessions below VND10 trillion.

At that time, cash inflows from foreign investors became a highlight as they continuously net bought during the period. From the beginning of November until now, they net bought more than VND6.2 billion on HoSE alone, the largest figure in recent months. Earlier this year, they net sold nearly VND4.2 trillion.

Capital flows from East Asia and Thailand continue to play an important role in attracting foreign investors to return to the market. Outstanding passive funds such as Fubon ETF and Diamond ETF continuously attract money with a value of hundreds, even trillions of dong. In addition, well-known foreign funds like Dragon Capital and VinaCapital also showed signs of disbursing recently.

The attractive valuation of the Vietnamese stock market is one of the appealing factors to foreign investors. Data from Bloomberg showed that the VN-Index's price to earning ratio (P/E) is currently at 9.4x, even lower than the bottom hit at the end of March 2020 and equivalent to the bottom during the 2011-12 crisis.

Although short-term difficulties are inevitable, Dragon Capital believes that many risks have been priced-in and the market valuation is in a very attractive area.

Similarly, ACB Securities Company (ACBS) also assesses that the VN-Index still maintains a greater attraction for long-term investors compared to peer-to-peer markets with P/E of 9.8x.

SGI Capital believes that the market has been at the oversold zone corresponding to the historical cheap valuation area.

“The nature of the stock market is always volatile and difficult to predict in the short term, investors who can overcome the current crisis will reap great results when the market and the economy return to the growth cycle," said the investment fund. 

Source: Vietnam News

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top