VN-Index was named among the top three fastest growing markets in the world (Photo: VNA)Hanoi (VNA) – Vietnam’s stock market has something to cheer about,as the VN-Index was named among the top three fastest growing markets in theworld.
The VN-Index recorded the best weekly gain in the past eight years fromNovember 20 to 24, closing at an almost decade high of 935.57 points, over5 percent higher than the previous week.
In the global arena, Vietnam’s benchmark index was the second best performerlast week and ranked third since the start of 2017, with a growth of nearly 41percent, behind Mongolia (91 percent) and Argentina (60 percent),according to Bloomberg’s data.
Driving the market was the investor expectation that the market would maintainthe upward trend through the year-end with a target of 1,000 points.
Investors increased money being poured into the market, with the trading valueaveraging 4.6 trillion VND (roughly 202 billion USD) per session last week, up6.5 percent over the previous week.
Money began spreading to small- and mid-cap companies instead of focusing onseveral blue chips, which according to many analysts will support the market incase a correction takes place.
[Infographics: Stock market capitalisation hits record]
The local stock market is backed by strong cash flows from both domestic andforeign investors thanks to successful mega deals this month, such as the stockdebut of Vincom Retail and heavy investment of Singapore’s Jardine Cycle& Carriage in Vinamilk through a share purchase.
This trend is forecast to uphold, given the State Capital InvestmentCorporation (SCIC) will accelerate its divestment of State capital from bigcompanies, including FPT Corp, Vinaconex, Binh Minh Plastics and Tien PhongPlastics. SCIC will likely announce the initial selling prices of thesecompanies this week.
In addition, Sabeco, known as Vietnam’s biggest brewer, held its secondinternational roadshow in London on November 27 to provide aninvestment opportunity in the company after the government decided to reduceits holding here.
These stocks are expected to continue their growth in the near future andtranslate into a spillover effect to the whole market.-VNA
VNA
