Market in Turmoil

The stock market witnessed a dramatic downturn, with the index closing 6.68% lower, nearing the 7% cap set by regulators. A staggering 263 tickers hit their floor price, marking the lowest point since January 14.

Trading Volume Surges

Trading activity on the Ho Chi Minh Stock Exchange doubled, reaching VND39.63 trillion (US$1.54 billion), as investors scrambled to adjust their positions in the wake of the announcement.

Global Impact

The ripple effects were felt worldwide, with Nasdaq futures dropping 3.2%, European futures down nearly 2%, and the Nikkei experiencing a 3% fall in Tokyo, touching eight-month lows. This global sell-off was driven by fears that new U.S. tariffs could intensify the ongoing trade war, potentially leading the world into a recession.

Sector-Specific Fallout

The VN-30 basket, which includes the 30 largest capped stocks, saw all its tickers falling, with 28 hitting the floor price. Notable declines included VNM of dairy giant Vinamilk, which closed 6.6% lower, and SSB of SeABank, ending with a 2.6% drop.

Foreign Investors Retreat

Foreign investors were net sellers, offloading assets worth VND3.7 trillion, with significant sales in MBB of lender MB and TPB of private TPBank.