HANOI — Vietnam’s benchmark stock market index hit a fresh record high on Thursday, topping the 1,500 point mark for the first time and defying a slump across most other Asian equity markets.
The small frontier market has risen 36% this year and analysts heralded the new high, driven by banking and real estate shares, as an “unprecedented moment”.
“In June, given the COVID-19 situation, the rosiest scenario we could think of is a year-on-year gain of 30% for the VN Index in 2021, targeting 1,500 level by year end,” said an analyst at VNDirect Securities.
Vietnam, consistently one of Asia’s fastest-growing economies, had been badly hit by the coronavirus, which disrupted its supply chains and hit workers in key industries.
Vietnam’s GDP contracted 6.17% in the third quarter of 2021, the sharpest quarterly decline on record, although the government expects GDP to expand 6.0% to 6.5% next year.
The rush to the stock market was driven partly by investors looking to park their cash as other investment opportunities have been stifled by the crippling economic impacts of COVID-19, said some analysts.
“Due to the impacts of the COVID-19 pandemic, the economy’s capability to absorb investment funds has declined significantly, and therefore investors have chosen to put their money in the stock markets,” an analyst with PetroVietnam Securities Inc. said.
“Investors will wait until at least the pandemic to be under control to withdraw funds from the stock markets for their other investment options.”
Vietnam’s main index has a market capitalisation of nearly $247 billion, about half of the value of its counterparts in Indonesia and Thailand, the region’s biggest economies.
Around 1.1 million new stock trading accounts were registered in Vietnam during the past ten months of this year, higher than the whole year figure of 2020, official data showed.
The government said new trading system would be launched to replace the current overloaded one in the second quarter next year to keep up with the large influx of investors.
($1 = 22,670 dong)
- Hong Kong: Stocks hit new record above 32,000 at open
- Stocks hit new highs in a late burst of buying
- Stocks poised to continue record run
- Tech Stocks This Week: Apple Stock Hits New High, Snap Plummets, and More
- Gold Price Hits New Record, All About the Dollar as US Shutdown Looms, Silver Breaks $40
- Hong Kong: Stocks in year's first loss after record run
- FTSE 100 index hits new record highs with a 1% surge above 7,850
- Hong Kong: Stocks open up to extend record run
- Wall Street rises as top technology stocks hit record highs
- Apple Stock Hits An All-Time High: Buy, Sell, Or Hold?
- The US economy just hit a milestone
- Tech stocks hit a rare and ominous milestone
- Fruit and vegetable exports hit new record
- Vinhomes set new transaction record after IPO
- New milestones in jobs report signal a bustling economy
- Amazon stock hits $2,000 for the first time
- Singapore's 2017 tourism receipts, visitor arrivals hit new highs for second straight year
- Up 80% in the Past Year, Does Estée Lauder Stock Still Have Room to Run?
Vietnam stocks hit new milestone in record run have 485 words, post on tuoitrenews.vn at November 26, 2021. This is cached page on Auto News. If you want remove this page, please contact us.