This was the biggest single-day loss the VN-Index has suffered since March 30, when it tumbled 4.86 percent as a result of negative market developments caused by the Covid-19 pandemic.  

Since then, the market had only suffered one other major losing session on April 21, when the VN-Index dropped 3.54 percent, with losses led by oil and gas stocks following news that U.S. oil prices had crashed into the negative for the first time in history.

According to analysts, losses this session were a result of investors rushing to cash in on short-term gains after the VN-Index had steadily recovered from 680 points at the end of March to exactly 900 points Wednesday.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw 312 stocks lose and only 82 gain, with 64 hitting their floor prices.

Trading volume this session jumped to its highest level since the beginning of 2020, hitting VND10 trillion ($432 million) in both order-matched and put through transactions, far higher than its second highest liquidity session this year, which was Monday, when it reached VND8.42 trillion ($364 million).

Trading volumes in March and April had averaged around VND4.2 trillion ($182 million), with the Covid-19 pandemic causing investors to pull money from equity markets. Foreign investors, in particular, where net sellers of Vietnamese stocks for almost all trading sessions during this period.

The VN30-Index for the market’s 30 largest capped stocks on Wednesday dropped 3.84 percent, with 28 stocks in the red and none in the green. Ten blue chips hit their floor prices.

Leading losses was MSN of food giant Masan Group, down 7 percent, followed by eight other tickers that lost 6.9 percent each.

Two of them were BID of BIDV and CTG of VietinBank, two of Vietnam’s biggest state-owned lenders by assets. The third, VCB of Vietcombank, was one of the better performers on the VN30, falling just 1.8 percent.

In oil and gas, GAS of energy giant PetroVietnam Gas and PLX of petroleum distributor Petrolimex both dropped 6.9 percent, while POW of electricity generator PetroVietnam Power shed 6.7 percent. All three hit their floor prices.

The poor performances of these stocks followed drops in global oil prices. As of 4:40 pm, WTI Crude was down 3.56 percent to $38.19 a barrel, and Brent Crude was down 3.28 percent to $40.38 a barrel. But the global oil prices are still at their highest levels since March.

The other tickers that hit the floor included MWG of electronics retailer Mobile World, PNJ of jewelry retailer Phu Nhuan Jewelry, ROS of real estate developer FLC Faros, and SSI of brokerage Saigon Securities Inc., all down 6.9 percent.

Other major losing stocks this session included BVH of insurance giant Bao Viet Group, down 6.8 percent, VRE of mall operator Vincom Retail, down 6.6 percent, MBB of state-owned mid-sized lender Military Bank, with 5.9 percent, and FPT of IT services firm FPT, with 5.7 percent.

VIC of private conglomerate Vingroup and VHM its real estate arm Vinhomes, the biggest and third biggest capped stocks on the VN30, tumbled 2.7 percent 1.3 percent respectively.

The stocks that lost the least were EIB of private Eximbank, SAB of major brewer Sabeco, and VNM of dairy giant Vinamilk, all of which shed 0.6 percent.

NVL of real estate developer Novaland and SBT of agricultural firm TTC-Sugar were the only tickers that kept their opening prices this session.

Meanwhile, the HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, slumped 5.49 percent, and the UPCoM-Index for stocks on the Unlisted Public Companies Market fell 2.37 percent.

With the market plunging steeply, foreign investors seemed to be bottom fishing, net buying VND260 billion ($11.24 million) worth of stocks on all three bourses, with buying pressure on VHM of Vinhomes, VCB of Vietcombank and two exchange traded funds.