Benchmark indices lost more than 2 per cent on Monday as banking and real estate industries faced strong selling pressure, with many pillar ticker symbols hitting floor prices.

Bank stocks are sold out strongly, despite good business results, due to pressure of corporate bonds nearing maturity. Many stocks even fell to the lowest range in last two years as investors feared cash flow risks.

Market analysts forecast that selling pressure will still increase during the decline of the market this week. Investor sentiment will remain easily exposed under the movements of interest rates, exchange rates and the bond market.

After deep corrections, the stock market often witnesses short rallies to wait for new signals. However, as the market is now covered by many negative factors, especially soaring inflation and higher interest rates, defensive stocks, including electric utility stocks, become appealing assets for investors.

The VN-Index lost the 1,000-point landmark again after a three-day drop. Viet Nam’s benchmark index decreased 2.22 per cent on Friday to close at 997.15 points, expanding the three-day loss to 3.6 per cent.

The VN-Index plummeted to below 1,000 points in the third quarter although sales reports and GDP growth have shown positive results.

The Vietnamese stock market extended losses in broad-based selling on Thursday as investors shunned equities on worries over the trend of cash flow into the market.

The Vietnamese stock market settled lower on Wednesday, ending its two-day gaining streak due to the slump of heavy-weight stocks.

The Vietnamese stock market closed higher on Tuesday, extending rallies for a second straight session.

Vietnam’s Ministry of Finance is finalizing a draft decision to boost the stock market so that the number of investors will account for 10 percent of the country’s population by 2030.