Market flooded in red due to selling pressure

The Vietnam’s stock market fell off the 1,000-point mark on March 21 as investors dumped shares heavily due to bearish sentiment.

Market flooded in red due to selling pressure

In the morning trading session, the VN-Index sometimes dropped below 1,000 points but managed to hover above this mark thanks to standing buying demand. However, selling pressure unexpectedly strengthened in the afternoon trading session, engulfing the market in red.

Most blue-chip stocks, including VHM, VIC, VRE, VJC, PNJ, MWG, BVH, FPT and GAS as well as banking shares were sold heavily, tumbling the market. Selling pressure spread to the whole market, causing the benchmark to lose nearly 21 points as gas and oil stocks plummeted strongly, of which, GAS slid 3.1 percent, PVD plunged 7 percent, PVS sank 5.9 percent and PVB dived 6.6 percent.

Local investors sold shares heavily whereas foreign investors net bought with a total value of VND145 billion. Unfortunately, buying demand from foreign investors failed to prevent the market from a sharp decline. It is obvious that the market dropped drastically because March 21 was the expiration date of future contract F1903.

All derivatives contracts lost heavily and were lower than the VN30-Index by 13-17 points, showing that investors were pessimistic during this time.

The VN-Index chopped 20.52 points, or 2.05 percent, to close at 981.78 points.

Liquidity on the market also weakened with total trading volume at 200 million shares, worth VND4.3 trillion, a decrease of more than 45 percent compared to a worth of more than VND8 trillion in the previous trading session.

By Nhung Nguyen – Translated by Thuy Doan

Other news