Forced-selling causes VN-Index to lose nearly VND170 trillion

Vietnam's stock market was quite bearish in the first trading session of the week on January 17. News on the under-the-counter sale of FLC shares and the Thu Thiem land auction scandal continued to affect the whole market negatively.
Explaining the phenomenon of several stocks being sold at the floor prices, a representative of SSI Securities Company said that many accounts were borrowed money at full margins, especially stocks in the FLC family and real estate stocks that had continuously hit the floor prices and had been unsalable, so they fell below the safe mortgage threshold.

Therefore, many securities companies conducted forced selling but could not sell because there was no liquidity, so they sold the remaining stocks in the investor's portfolio to recover capital. It was the cause leading to a series of stocks on the market falling to the floor prices, dragging the VN-Index down steeply, losing 43.18 points, or 2.89 percent, to close at 1,452.84 points.

Closing the session on HNX, the HNX-Index dropped 21.52 points, or 4.61 percent, to close at 445.34 points.

With this plunge, the market capitalization of HoSE lost nearly VND170 trillion.

By Nhung Nguyen – Translated by Gia Bao

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