Shares slide after US names Vietnam currency manipulator

13:00 | 19/12/2020 Economy

Shares tumbled on Thursday as the market fluctuated amid the news Việt Nam was labelled a currency manipulator by the US.

shares slide after us names vn currency manipulator
Workers of Hoà Phát Group (HPG) unload steel. Shares of Hoà Phát Group (HPG) lost 3 percent on Thursday. VNA/VNS Photo

The US Treasury Department has branded Việt Nam and Switzerland currency manipulators while China and nine other countries have been placed on a watch list of countries suspected of manipulating their currencies.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange lost 1.43 percent to end the trading session at 1,051.77 points.

It had gained 1.11 percent to end the Wednesday trading session at 1,066.99 points.

Nearly 668 million shares were traded on the southern bourse Thursday, worth VNĐ14.5 trillion (US$629 million).

Market breadth was negative with 148 gainers and 290 decliners.

“The news that the US put Việt Nam on the list of currency manipulation countries somewhat influenced and caused the VN-Index to decline quite sharply today and now the index has moved close to the support level of 1,050,” said BIDV Securities Co.

“Investment cash flow declined meanwhile foreign investors continued to be net sellers on the HSX but turned back to be net buyers on the HNX.

“Market breadth turned negative and liquidity increased from the previous session. According to our assessment, the VN-Index may fluctuate in the last session of the week, but the potential remains at 1,050,” it said.

Foreign investors net sold VNĐ776.84 billion on HOSE, including Hoà Phát Group (HPG) with VNĐ184.3 billion, Vietinbank (CTG) with VNĐ68.5 billion and Vietcombank (VCB) with VNĐ60 billion. Foreigners were net buyers on the HNX with a value of VNĐ5.17 billion.

The large-cap tracker VN30-Index was down 1.24 percent to 1,016.95 points.

Twenty-two of the 30 large-cap stocks in the VN30 basket decreased while five increased.

Pillar stocks lost ground such as Vietcombank falling 3.9 percent, Vietjet dropping 2.7 percent Hoà Phát Group losing 3 per cent, Vingroup (VIC) declining 2.2 percent and Vincom Retail (VRE) 2.5 percent.

Twenty-two out of 25 sector indices on the stock market lost ground, including seafood processing, construction, logistics, wholesale, real estate, retail, insurance, IT, energy, banking, food and beverage, construction materials, rubber production, securities and healthcare.

They all fell between 0.1 and 2.9 percent.

On the Hà Nội Stock Exchange, the HNX-Index rose 0.23 percent to end Thursday at 172 points.

It had gained 2.23 percent to end Wednesday at 171.62 points.

Nearly 115 million shares were traded on the northern market, worth VNĐ1.2 trillion.

Theo VNS