Vietnamese stocks closed down 4.5% at 1,177.99 on Friday, the lowest level in nearly a month, led by shares of property companies and VinFast’s parent company.
“Traders are selling to take profit after a long streak of gains amid global uncertainty,” a Hanoi-based trader said. Traders also said the macroeconomic situation is not looking positive, with global demand remaining weak, adding that China’s property crisis has hurt sentiment.
Vietnam’s benchmark Ho Chi Minh index is up 17% so far this year. Shares of the country’s largest conglomerate Vingroup closed limit down 7% at 66,900 dong, after its Nasdaq-listed unit VinFast on Thursday closed 33% lower.
The country’s largest listed property firm, Vinhomes, another unit of Vingroup, fell 6.9% to 56,800 dong.
“The retreat of VinFast after a surge in its Wall Street debut has somehow eroded hopes for a miracle,” a Hanoi-based stock broker said. Traders said Friday’s fall triggered bargain hunting, with 1.7 billion shares changing hands, a record high.
“Cash inflow into the market is strong so we expect the correction will be short-lived,” the trader said.