Vietnam stocks plunge following Brexit vote results

June 24, 2016 | 14:45

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Vietnamese shares slumped sharply in the early session as investor confidence dived after latest voting results in Britain suggested the country may terminate its membership of the European Union (EU).

Local markets plunged in the early session as investor confidence turned low following Brexit votes that terminated Britain's membership in the European Union. - Photo StoxPlus

The benchmark VN Index sank 3.4 per cent to close at 610.64 points, erasing gains that were made in the last six weeks.

The HNX Index on the Ha Noi Stock Exchange plummeted 3.2 per cent to end at 82.60 points, losing all gains of the previous three trading weeks.

Investor confidence turned low as latest voting results showed that Britain could leave the EU. Results coming from all 382 voting areas revealed that 51.9 per cent of voters had decided Britain should not remain an EU member.

The British sterling fell some 9 per cent against the US dollar, hitting its lowest since 1985.

At the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the British sterling is currently trading at VND30,648 per sterling, an eight-per-cent drop from Thursday's value.

All sectors on the national stock market declined, led by insurance companies, banks, energy firms and brokerage corporations.

Among the listed companies, insurer Bao Viet Holdings (BVH) declined by 6.6 per cent, Vietcombank (VCB) lost 4.2 per cent and Vietinbank (CTG) dipped 3.5 per cent.

Lower investor confidence resulted in higher market liquidity. Both local markets saw more than 196 million shares being traded worth VND3.25 trillion (US$144.4 million).

VNS

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