Vietnam stock market crashes over corporate scandal
Vietnam stock market crashes over corporate scandal
Vietnam’s stocks took a nosedive on Tuesday as investors kept selling amid news of the arrest of the chairwoman of Van Thinh Phat Group, a leading property developer.
On the Ho Chi Minh Stock Exchange, the VN-Index lost a hefty 36.28 points, or 3.48 percent, against the previous day at 1,006.20, the lowest since November 2020, with Bank for Foreign Trade of Vietnam (VCB) and PetroVietnam Gas JSC (GAS) among the biggest losers.
Up to 685 stocks closed in the red, including 222 plunging to the floor prices, while only 173 others managed to gain.
According to securities enterprises, investors turned pessimistic about the market outlook after the central bank raised two policy rates by one percentage point each last month to curb inflation, coupled with rumors about the Van Thinh Phat scandal and soaring risks on the corporate bond market.
Since the beginning of this year, the benchmark has declined over 31.45 percent, making Vietnam among the world’s worst-performing stock markets, as per statistics from website vietstock.vn.
On the Hanoi Stock Exchange, the HNX-Index slid 11.07 points, or 4.82 percent, compared to a day earlier, to close at 218.78, with transaction value remaining sluggish.
