Vietnam’s stock market loses $2 billion

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Sweet Twenty & Its Million Viewers

Vietnam’s stock market loses $2 billion in capitalization during 2016’s first six sessions

In the first six sessions of this 2016, VND46.16 trillion of capitalization has been lost. The capitalization of the Ho Chi Minh City Stock Exchange fell by VND39.66 trillion at the close of 2015. However, the Hanoi Stock Exchange fell by a comparatively modest VND6.5 trillion around the same time.

According to Vietcombank Securities Company, the market decline and mood of foreign investors shows that some remaining risk is causing investors to bet on cash instead of stocks. Liquidity and the trading behavior of foreign investors is giving evidence of large selling pressure. VSC recommended that the investors should hold off on buying stocks when they continue to fall and keep the cash for now, especially when there is a risk with the exchange rates.

In 2015 alone, the dong was devalued three times, each 1%. Combined with the State Banks’ recent resetting of the daily central rate for the dong/dollar, the Vietnamese dong has lost 5% of its value against the dollar. The SBV set the rate for the dong/dollar to VND21,896 in January.

The Vietnamese dong has been forecast to loss 3-5 percent in value against the greenback this year.

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