Almost all pillar stocks were sold off in the first trading session of the week, April 15.
At the end of the trading session, the VN-Index decreased by 59.99 points (equivalent to a decrease of 4.7%) to 1,216.61 points. The HNX-Index decreased by more than 4.8% to 229.71 points.
In total, 29 out of 30 pillar stocks fell sharply, many of which hit the floor, such as: Masan Group (MSN), Industrial Investment and Development (BCM), Vietnam Rubber Industry Group (GVR), BIDV Bank (BID), SSI Securities (SSI), Vincom Retail (VRE).
Other pillar stocks also fell sharply. Techcombank (TCB) of billionaire Ho Hung Anh fell 3,000 VND, down to 44,400 VND/share; Hoa Phat Group (HPG) of billionaire Tran Dinh Long also fell 1,450 VND, down to 28,500 VND/share; Vingroup (VIC) of billionaire Pham Nhat Vuong fell 1,450 VND, down to 47,000 VND/share; Vinhomes (VHM) fell 2,100 VND, down to 42,400 VND/share...
On the Ho Chi Minh City Stock Exchange (HOSE), there were 475 stocks that decreased in price (of which 109 stocks hit the floor), 30 stocks remained unchanged and only 40 stocks increased in price.
Stocks fell across the board while domestic gold prices rose sharply, rising by more than VND2 million in the morning and setting a new record of VND85.5 million per tael. By the afternoon, gold had cooled down to around VND84 million per tael.
The USD/VND exchange rate skyrocketed by 90 VND compared to the end of last week, to 25,270 VND/USD (selling price) at Vietcombank . This is a new record high for this exchange rate in the banking system.
Mr. Luu Chi Khang, Director of the Research Center of CSI Securities Company, assessed that this was one of the sharpest declines in the stock market. There are many reasons, including war fears, high exchange rates and sharp increases in gold prices...
In fact, the world financial market fluctuated strongly during the weekend and early new week sessions after news of Iran's attack with drones and missiles on Israel on April 14.
Investors fear the Middle East will descend into a fierce war after Israeli officials said Tel Aviv would respond to Iran's attack.
G7 and EU leaders convened an extraordinary meeting to discuss Iran's attack on Israel. The Israeli cabinet also met. However, there is no information about the final decision.
World gold prices immediately increased rapidly again, the USD also stood at a very high level.
For now, many expect the war to not expand to the Middle East. Washington has signaled it does not support Israeli retaliation.
The brokerage director of a securities company commented that the market has adjusted sharply due to many domestic and foreign reasons; however, the medium and long-term outlook remains positive.
Some forecasts suggest that the conflict in the Middle East may not get too hot; but many forecasts worry that tensions in the Middle East could rise further.
With tensions in Ukraine and elsewhere, the world economy faces many risks. Over the past few years, the world economy has faced many difficulties due to rising commodity prices and inflation, affecting consumption and production activities.
The sell-off is happening in many stock and cryptocurrency markets. Bitcoin has been falling sharply since the end of last week and shows no signs of going up.
Gold and USD are considered the destinations of cash flow. Although the USD is under a lot of pressure due to lack of reserve demand from some big countries such as Russia, China..., it still seems to be attractive to investors around the world, especially when the US Federal Reserve (Fed) maintains interest rates at the highest level in decades: 5.25-5.5%/year. The Fed recently signaled a delay in cutting interest rates, possibly until September.
The USD appreciation continues to put pressure on the currencies of many countries around the world, including VND. The USD/VND exchange rate has continuously increased since the beginning of the year and is nearly 3.5% higher than at the end of 2023.
The rise in the value of the US dollar and gold has added to inflationary pressures in many countries. The risks to many economies have also increased.
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