|In the last three months, the VN Index has rallied 32.62 per cent, topping the world’s fastest-growing markets in the same period. — Photo geektime.vn
The index ended January 31 at 1,110.36, close to its highest-ever record of 1,167, seen on February 27, 2007.
In the last three months, the VN Index has rallied 32.62 per cent, topping the world’s fastest-growing markets in the same period.
Besides the index’s growth, liquidity has also improved significantly, with its trading value averaging VND7.5 trillion (US$329 million) per session on the HCM Stock Exchange in January. In recent sessions, the daily trading value has been around VND10 trillion.
On the minor Ha Noi Stock Exchange, the HNX Index witnessed a more modest growth of 7.7 per cent in January.
The breakthrough in Viet Nam’s stock market was mainly attributable to optimistic macro-economic fundamentals, positive business results of listed companies, as well as high investor expectations for State divestment plans among many large State corporations.
Deputy Prime Minister Vuong Dinh Hue has said that 2018 will be the peak year for equitisation of State-owned enterprises (SOEs) and State capital divestment.
In the first quarter of this year, four enterprises will offer their initial public offerings (IPO), including Viet Nam Rubber Corporation, PetroVietnam Oil Corporation, Binh Son Refining and Petrochemical Company and PetroVietnam Power Corporation – the four largest SOEs by capitalisation among the 69 SOEs listed in the equitisation plan of 2017.
Another major push was caused by the strong inflows of foreign capital. Foreign traders were responsible for net buying values of nearly VND8.5 trillion in January, after total net purchases of VND28 trillion in Viet Nam’s stock market in 2017. VNS