On the final trading day alone, the VN-Index was among the most significantly adjusted indices globally, dropping 52 points, or 3,06% from its reference level. This performance starkly contrasted with other Asian markets, most of which saw gains of 0,5-2%.
According to financial data aggregator IndexQ, Vietnam's stock market volatility this week far outpaced other markets. Russia's benchmark index, the RTS Index, ranked second with a 3,8% loss. Portugal followed with a 3,38% decline, Argentina with 2,21%, and Venezuela with 1,96%.
This marks the deepest decline for the Vietnamese stock market since the "tariff shock" in early April. The market fell in four of five trading sessions, dropping from 1,741 points to 1,646 points, its lowest level in the past month.
The VN-Index's performance this week defied predictions from most securities firms. Early in the week, many analytical groups anticipated technical corrections but expected the index to quickly overcome them and reclaim its previous peak of 1,766 points (based on closing prices), driven by positive foreign investor activity and subsequent domestic investor enthusiasm.
Beyond the plummeting index, capital flow into the market also became more cautious. The average matching order value per session this week was only about 20,300 billion VND, a decrease of approximately 15% from last week. One particular session saw liquidity as low as 16,200 billion VND, the lowest in six months.
According to experts, several factors contributed to this sharp decline. First, banks raising short-term savings interest rates to their ceiling negatively impacted investor sentiment. Second, foreign investors resumed massive selling after a week of net buying, leading to pessimism among domestic individual investors regarding short-term prospects. The remaining factor is that the market is in its year-end low season and lacks positive information.
However, experts hope this extended decline, marked by a "shake-out" of over 52 points on the last trading day, will stimulate new capital inflow and lead to a more favorable performance for the VN-Index in the final two weeks of the year.
Phuong Dong
