The index, which tracks the Ho Chi Minh Stock Exchange (HoSE), declined 56.62 points to close at 1,591.17, extending losses into the fourth week of the conflict and signaling a shift from event-driven volatility to broader cyclical risks.

Losses were widespread on the HoSE, where 317 stocks declined, including 38 that hit their floor prices, far outnumbering 33 gainers.

A range of large-cap stocks fell to their daily limits, including VIC, MWG, GVR, BSR, GEX, VCG, PNJ, KBC, VCI, VND, and HCM. The VN30 index dropped 56.94 points to 1,741.05, with 27 of its 30 constituents in negative territory.

Gains in a handful of stocks such as TCX, VNM, NAB, SAB, DCM, SBT, and FRT were insufficient to offset broader market losses.

Since the start of March, VN-Index has fallen nearly 309 points. Market liquidity also weakened, with trading value on HoSE declining to nearly VND28.89 trillion ($1.1 billion) from over VND31.09 trillion in the previous session (last Friday), reflecting cautious investor sentiment.

Brokerage KB Securities Vietnam (KBSV) said the market’s short-term trend has turned negative, while the medium-term outlook remains neutral. Rising oil prices and a stronger U.S. dollar index are fuelling concerns over inflation and exchange rates in Vietnam.

Additionally, some commercial banks have raised deposit rates to attract funds, contributing to broader selling pressure.

Foreign investors extended net selling, offloading a net VND423 billion ($16.06 million) across the three exchanges. They were net sellers of stocks such as MWG, HDB, VHM, VIC and STB, while net buying MSN, VNM, VCK and FPT.

Year-to-date, foreign investors have recorded net outflows of about $1.1 billion.

Analysts at Maybank Securities Vietnam ( MSVN) said the U.S.-Iran tensions have pushed investors toward safe-haven assets, putting pressure on emerging markets.

U.S. Treasury yields have risen on expectations of higher inflation, while equities face correction pressure due to higher capital costs and macroeconomic risks, the brokerage added.