VN-Index is among the second-largest stock indexes in the world with the strongest decline last week.

Last week, VN-Index lost 7.97%, from 1,276.6 points to 1,174.85 points, becoming the second index in the world in terms of decline, only after the US PHLX Semiconductor index.

According to StockQ, last week, Vietnam was one of the most volatile stock markets in the world in a negative direction, experiencing 4 consecutive sessions of decline. The VN-Index lost approximately 8%, just behind the 9.23% decrease of PHLX Semiconductor - an index calculated by the capitalization value of the 30 largest semiconductor design, distribution and manufacturing companies in the US.

The fluctuations of VN-Index far exceeded the decline of many indices in the region such as Japan's Nikkei 225 down 6.26%, Taiwan down 5.83%, Thailand down 4.6%, South Korea down 3.35%.

The strong correction last week also put VN-Index into the group of 10 indexes with the strongest decline in the world in the past month with a decrease of 5.44%.

Last week, the Vietnamese stock market traded 4 sessions. The VN-Index fell sharply in the first session of the week, losing 59.99 points, falling from 1,276 points to 1,216 points, marking the sharpest decline in nearly 2 years. The index representing the Ho Chi Minh City Stock Exchange recovered significantly in the following sessions, but by the end of the session, it all turned around and fell. In the last session of the week, the VN-Index was under intense selling pressure and lost another 18 points, closing at 1,174.85 points.

According to the analysis team of Mirae Asset Securities Vietnam, investors last week received consecutive negative macroeconomic information such as the USD/VND exchange rate continuously hitting a historical high, tensions in the Middle East and foreign investors' fierce net selling. These are considered the main reasons for the index representing the Ho Chi Minh City Stock Exchange to fall nearly 8% within a week.

The banking group had the most negative impact on the VN-Index last week when the first 3 positions on this list were all 3 bank codes with large market capitalization. Specifically, BID caused the VN-Index to lose 7 points, CTG and VCB caused the market to lose 5.69 points and 5.64 points, respectively.

Foreign investors are still diligently selling on the Ho Chi Minh City Stock Exchange when the net selling value in 4 sessions reached 1,500 billion VND. Specifically, foreign investors disbursed 9,481 billion VND to buy more than 351 million shares while the selling value reached 11,000 billion VND, equivalent to 406 million shares.

“There is a lot of negative information appearing on the macro factors, so in general, VN-Index is in a risky state. In the short term, the 8% decrease in 1 week can stimulate the bottom-fishing psychology of investors with high cash status, so it is expected that VN-Index is nearing a technical recovery,” Mirae Asset Vietnam’s report wrote.

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