Vietnam sees record stock trades amid selling spree

Vietnamese stock markets experienced unprecedented trading volumes, with a record 1.74 billion shares traded on the Ho Chi Minh City Stock Exchange on Monday, Bloomberg reported on Tuesday.

This activity is attributed to investor concerns over rumours that President Vo Van Thuong may resign. The VN Index fell for the fourth consecutive session on Tuesday, reducing its yearly gains to just 10 per cent.

Investors are reportedly offloading shares ahead of a special parliamentary session scheduled for Thursday to address “personnel matters,” which might include discussions on the president’s potential departure.

The speculation has had a significant and negative effect on the market, causing a sense of fragility among investors due to the uncertain policy outlook.

The market’s reaction is further compounded by foreign investors’ actions, who were net sellers of Vietnamese stocks last week, leading to a total outflow of $158 million for the year. The Vietnamese dong is also feeling the pressure, trading close to its lowest point since November of the previous year.