Shares plunged to their lowest level in more than three months on Wednesday as investors increased selling force amid fears of a steeper downtrend.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index lost 2.68 per cent to close at 1,243.17 points. The index had remained unchanged to close Tuesday at 1,277.40 points.

Nearly 852.3 million shares were traded on the southern bourse, worth VND20 trillion (US$487.8 million).

The market's breadth returned to a negative zone with more stocks losing points. There were 71 gainers and 423 losers.

The 30 biggest stocks tracker VN30-Index lost 2.32 per cent, to 1,268.95 points. In the VN30 basket, one stock increased, while 29 inched lower.

The banking group was hit strongly with losers being Vietinbank (CTG), Asia Commercial Bank (ACB), Vietnam International Bank (VIB) and Tien Phong Bank (TPB), National Commercial Joint Stock Bank (NVB), Vietcombank (VCB), Military Bank (MBB), Bank for Investment and Development of Vietnam (BID), Techcombank (TCB), VPBank (VPB) and Sacombank (STB).

Energy stocks also declined sharply such as Viet Nam National Petroleum Group (PLX), Binh Son Refining and Petrochemical Company Limited (BSR), PV Power (POW). Meanwhile, losers included PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD) and Drilling Mud Joint Stock Corporation (PVC).

The HNX-Index on the Ha Noi Stock Exchange (HNX) declined 3.14 per cent, to close at 284.05 points.

More than 100.6 million shares were traded on the northern exchange, worth VND1.2 trillion.

FLC, ROS can trade again if violations settled

At the Government's regular press conference in August, Deputy Minister of Finance Nguyen Duc Chi said shares of FLC Group (FLC) and FLC Faros Construction Company (ROS), will be allowed to trade again if the violations that caused transactions of these shares to be suspended are settled.

As for shares of FLC, it is necessary to have an audit report for 2021 and an audit report for the first six months of 2022, organising a general meeting of shareholders. Then if these conditions are met, enterprises can put shares on the exchange floor again.

As shareholders, investors must raise their opinions at the general meeting of shareholders to overcome the recent problems and find way to solve them.

The HOSE on August 16 banned FLC Group from trading their shares due to delays in releasing their audited 2021 financial reports.

On August 12, ROS, which is linked to FLC Group, was also suspended from trading. — VNS