VN-Index drops as Evergrande crisis riles global markets

The index plunged by nearly 25 points at a certain point in the morning before gradually climbing back to close nearly 11 points lower. This is its worst trading day since Aug. 23.

The fall came as global experts warn of a collapse among Chinese real estate companies as the country’s highly indebted developer Evergrande verges on the brink of default.

Most stock markets in Asia, Europe and the U.S. have fallen because of these warnings.

Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, fell 4.5 percent to VND23.43 trillion ($1.03 billion).

The VN30 basket, comprising the 30 largest capped stocks, was a sea of red with 25 tickers losing.

VRE of retail real estate arm Vincom Retail led the fall with a 3.1 percent drop, dragging it down to a seven-day low.

VHM of real estate giant Vinhomes lost 3 percent to hit a four-month low.

GVR of Vietnam Rubber Group lost 2.7 percent, while PDR of Phat Dat Real Estate Development fell 1.6 percent.

Only four blue chip tickers ended in the green, led by BVH of insurance company Bao Viet Holdings with a 3.3. percent gain.

Foreign investors turned net sellers to the tune of VND443 billion, with strongest pressure on HPG of steelmaker Hoa Phat Group and VIC of biggest private conglomerate Vingroup.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, rose 0.03 percent while the UPCoM-Index for the Unlisted Public Companies Market shed 0.7 percent