The VN-Index slid below 1,650 after an 11-session foreign outflow streak, highlighting rising global risk aversion and mounting pressure on emerging markets.
Vietnam’s benchmark VN-Index ended its three-day rebound with a sharp pullback on Tuesday, dropping nearly 11 points to close at 1,649 as investors rushed to lock in profits amid intensifying foreign outflows. The index briefly touched 1,660 at the open—fueling hopes of a breakout—before selling pressure spread across the market and erased early gains.
The downturn was broad-based: more than 220 stocks on the Ho Chi Minh Stock Exchange fell, almost triple the number of advancers. Large caps fared no better, with 23 of 28 VN30 components finishing in the red. Trading value surged to more than VND 24.3 trillion, the highest in two weeks, as domestic investors absorbed heavy selling.
Brokerage stocks suffered the steepest decline, with every ticker in the sector closing below reference. VIX and VND led the losses, each tumbling around 3.7%. Real estate names followed in deep red territory, with NLG down 3.2% and small-cap developers such as LDG, DXG, HDG, and NBB sliding sharply. Only a handful—VIC, DIG, and DXS—managed modest gains under 1%.
Banks showed a mixed picture. TPB and VPB fell more than 2%, dragged down by concentrated selling. HDB emerged as the rare bright spot, rising 2.8% after news that major shareholder Sovico registered to sell over 65.6 million shares to comply with Vietnam’s credit organization ownership limits. The move helped stabilize the broader market during an otherwise weak session.
Meanwhile, foreign investors extended their selling spree to 11 consecutive sessions, withdrawing VND 650 billion—twelve times more than the previous day. VND became the top target with over 7.2 million shares sold, followed by DXG, MBB, and VPB. The persistent outflows add pressure to Vietnam’s currency, which is already facing seasonal strain as foreign-invested enterprises repatriate profits.
In a market update, Đặng Nguyệt Minh, Head of Research at Dragon Capital, warned that foreign withdrawal remains a key risk despite strong domestic liquidity. She noted that global capital is increasingly favoring developed markets due to higher relative returns and geopolitical uncertainty, reducing the appeal of emerging markets like Vietnam.
The setback interrupts Vietnam’s recent momentum and reflects a larger question facing Asia’s fast-growing markets: as global investors turn cautious and currency pressures build, can domestic capital continue to offset foreign selling—or will Vietnam’s rally stall before the next growth catalyst arrives?
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Source: Vietnam Insider