The benchmark VN-Index on the HCM Stock Exchange fell 1.60 per cent or 18.77 points to close at 1,153.59 points, putting an end to its previous nine-session rally of total 4.3 per cent.– Photo vietnamplus.vn

HÀ NỘI – Vietnamese shares tumbled yesterday due to a massive sell-off as investors worried about a possible trade war between the US and China that could dampen global trade and economic growth.

The benchmark VN-Index on the HCM Stock Exchange fell 1.60 per cent or 18.77 points to close at 1,153.59 points, putting an end to its previous nine-session rally of total 4.3 per cent.

The southern exchange index had gained total 1.9 per cent since the beginning of the week to reach its record high of 1,172.36 points on Thursday before narrowing its weekly growth to only 0.3 per cent yesterday.

The minor HNX Index on the Hà Nội Stock Exchange dropped 1.62 per cent to end at 131.88 points, totalling a three-day decrease of 2.5 per cent.

The northern market index scored a weekly reduction of 0.9 per cent following the last three falling sessions.

More than 351 million shares were traded on the two local exchanges, worth VNĐ9.29 trillion (US$413 million).

The market breadth was negative with declining stocks outstripping gainers by 347 to 129 while 103 other stocks ended flat.

Large-cap stocks also underperformed as 25 of the 30 largest stocks by market capitalisation in the VN30 basket lost value, pulling the VN30 Index down 1.37 per cent to 1,128.93 points.

Vietnamese shares followed the global stocks that went down yesterday amid trade war fears after the US announced $60 billion worth of tariffs imposed on imports from China.

In return, China filed a 128-product list for potential retaliation, raising risks of a possible trade war that “could have enormous impacts on world trade and economic growth,” according to Bảo Việt Securities Co (BVSC).

BVSC said in its daily report that though Việt Nam would not bear direct impacts in the early stages of the trade war, “negative influences on the performance of domestic firms could be significant, especially when Chinese goods subject to high tariffs in the US market will penetrate into Viet Nam’s market.”

Viet Dragon Securities Co (VDSC) said that yesterday’s massive sell-off was foreseeable and “overwhelming selling pressures hit the market right from the start and dragged it down by nearly 30 points.”

Strong investor selling put 15 of the 20 sectors on the stock market in negative territory at the end of the session, with banking-finance and energy industry indices falling the most.

Among decliners in those industries were Bank for Investment and Development of Việt Nam (BID), Sài Gòn-Hà Nôi (SHB), insurer Bảo Việt Holdings (BVH), MB Securities (MBS), FPT Securities (FTS) and PetroVietnam Gas (GAS).

“As the VN-Index fluctuated around the record high amid negative movement of world stocks, profit-taking pressure is likely to remain high and trigger a correction in the next sessions,” BVSC said.

On the Unlisted Public Company Market (UPCoM), the UPCOM Index declined by 0.80 per cent to 59.91 points, posting a weekly loss of total of 3 per cent. – VNS