Daily Market Watch 20/03/2026: Equity Market Dropped Sharply on Fuel Price Hike Shock

MARKET HIGHLIGHTS

o        Vietnam equities extended losses at the open, following a ~20% surge in domestic fuel prices announced last night. The Ministry of Industry and Trade (MoIT) deployed the fuel price stabilization fund at VND 3,000–4,000/liter. Retail prices rose sharply, with E5 RON92 up VND 4,673 to VND 27,177/liter, RON95-III up VND 5,115 to VND 30,690/liter, and diesel up VND 6,395 to VND 33,420/liter.

o       However, the main drag on the market came from VIC, which fell more than 3% in the morning session due to heavy foreign selling pressure. The selling followed a disclosure by Vietnam Securities Depository (VSD) regarding the transfer of 48.9 mn VIC shares from VPL to HSBC (Hong Kong). This triggered both on-market and block trade selling. VIC alone recorded net foreign outflows of USD 138 mn this week.

o       The VN-Index dropped sharply to around 1,680 points in the morning, before bottom-fishing demand emerged, supporting mid-cap stocks to outperform the broader market. Meanwhile, VN30 constituents remained broadly under pressure, weighed down by persistent foreign outflows.

o        Selling pressure intensified in the afternoon session, driven by (1) renewed concerns over inflation and FX pressures due to the sharp rise of fuel price. The USD free-market rate rising to VND 27,750 (+5.4% vs. interbank), and (2) the VN-Index fell below the key technical support level of 1,680 points.

o       Domestic investors led aggressive sell-offs, while foreign investors further increased net selling, pushing liquidity sharply higher alongside steep price declines. Market breadth deteriorated significantly, with 95 gainers vs. 241 decliners, including 110 stocks down more than 2%, of which 19 were VN30 constituents. The VN-Index closed at 1,647.8 (-3.02%), falling below its 200-day moving average (1,648).