VN Index falls 49 points as global stock markets fall

The index closed down 48.53 points after rising 9.64 points in the previous session.

Turnover on the Ho Chi Minh Stock Exchange increased by 45% to VND23.782 trillion (USD947.4 million).

The VN-30 basket, comprising 30 companies with the largest capitalization, closed the session in the red.

The largest decline of 7.0% was recorded by GVR of Vietnam Rubber Group, followed by VRE of retail real estate company Vincom Retail with a 6.4% decline and HDB of HDBank, which fell 6.1%.

Foreign investors sold a net amount of VND730 billion, mainly by selling FPT, a subsidiary of IT giant FPT Corporation, and HPG, a subsidiary of steelmaker Hoa Phat Group.

The Hanoi Stock Exchange’s HNX index of mid- and small-cap stocks fell 3.82%, while the UPCoM index of unlisted public companies fell 3.19%.

The VN-Index’s sharp decline was in line with developments around the world, with many stock markets falling on Monday, with Japanese shares at one point exceeding their 1987 “Black Monday” losses as fears of a U.S. recession sent investors fleeing risk, betting that interest rate cuts would be necessary to save economic growth. Reuters Agency reported.

Japan’s Nikkei index closed down 12.40% to 31,458.42, its biggest one-day decline since October 1987, while the broader Topix index shed 12.48% to 2,220.91.

European stocks started the session down 1.8%, with France’s CAC 40 down 2.1%, Spain’s IBEX down 2.8% and Britain’s FTSE 100 down 1.7% on fears of a global recession following weak US data.