Vietnam Stocks Slump After First Possible Local Case Since April

(Bloomberg) -- Vietnamese stocks fell, with the benchmark VN Index dropping the most in more than a month after a report signaling the first possible local transmission of the novel coronavirus since April 16.

The VN Index fell as much as 4.7% after VnExpress reported that the coastal city of Da Nang has quarantined more than 50 people who came into contact with a man who tested positive for the virus. The government said earlier on Friday that the country is on its 99th day streak of having no new local infections.

A 57-year-old male had tested positive for the virus twice and authorities are waiting for more tests to confirm, according to a statement by the health ministry. Da Nang’s health authorities have also tested people who came into close contact with the suspected patient and 102 samples turned out negative. The coastal city will continue checking and isolating people and areas as needed.

Vietnam Isolates Dozens in Da Nang on Suspected Covid: VnExpress

“The news triggered the sell off in the market as investors are worried about a potential new virus outbreak and lockdown as what happened at the end of March,” said Tran Hoang Son, head of market strategy at MB Securities.

Vingroup and Vinhomes led declines, falling by at least 3%. The main stock index was down 3.3% at 2:22 p.m. local time, dropping the most since June 15. Vietnam had reported 412 coronavirus cases and zero fatality.

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