VIETNAMESE stocks’ trading volume soared to a record high as ongoing speculation that the nation’s president may quit this week hit investor sentiment.
About 1.74 billion shares changed hands on the Ho Chi Minh City Stock Exchange on Monday (Mar 18), according to data compiled by Bloomberg. The benchmark VN Index dropped for a fourth session on Tuesday, paring this year’s advance to 10 per cent.
The surge in trading volume comes as investors sell shares before Vietnam parliament’s special session on Thursday to discuss “personnel matters” that may include the possible resignation of President Vo Van Thuong, according to people familiar with the matter.
The rumour has “resulted in more dramatic and devastating impact on the market”, Hoang Viet Phuong, head of research and advisory centre at SSI Securities, wrote in a note. “Investors’ sentiment is fragile given mounting uncertainties” on policy direction.
Foreign investors were net sellers of Vietnamese stocks last week, taking the outflows this year to US$158 million. The dong is trading near its lowest level since November 2022. BLOOMBERG
