The continuous declined forced investors to sell their risk assets to cut losses and restructure portfolios, a stock analyst said. Broad sale-offs indicated that deleveraging intensified and investors preferred cash, he added.
Stocks on the Hochiminh Stock Exchange (HOSE) gave up most in three months, sending the VN-Index back to the eight-month low, as investors sold out across the board, weighed by deleveraged sales and steep global slumps.
The VN-Index, the measure of 253 stocks and five closed-end funds, sank 14.72 points, or 3.18%, to end at 448.4, the biggest loss since May 25, 2010 and the lowest close since December 21, 2009.
The gauge has declined 18.4% from the yearly high on May 6 and 7.4% this year, according to FPT Securities, which manages this website.
The market breadth was very negative on the Hochiminh Stock Exchange where eight stocks advanced, 239 declined and 11 closed unchanged.
The market liquidity rose 24% from a day earlier to 50 million shares and fund units valued at VND1,295 billion, up 19%.
Refrigeration Electrical Engineering Corporation (REE) was the most active stock on a trade of 2.34 million shares, which tumbled 3.55% to VND16,300.
Sacombank (STB), the fourth largest listed lender, came second in liquidity with 1.8 million units, which dipped 1.89% to end at VND15,600.
Saigon Securities Inc (SSI), the largest listed stock broker, shed 4.81% to end at VND27,700 on a trade of 1.65 million units, becoming the third most active issue.
At the close, 163 stocks closed at the floor prices, which are capped at 5%, according to FPT Securities.
VHC, a seafood exporter, outperformed with a ceiling rise of 4.79% to end at VND48,100.
Source: fpts.com.vn