The VN Index this year has reached new highs, with the 1,000 point threshold, an all-time high, expected to be very near.
Contrary to all predictions about a ‘dark November’, the stock market jumped to 950 points, becoming the second fastest-growing market in the world, just after Mongolia.
In the first trading session of December, the VN Index continued to rise by 10 points to 960 points.
The stock market has one year of prosperity in 2017 with the VN Index increasing by 44% this year, from 664.87 points to 960 points.
The blue chips have seen prices climbing to all-time highs. Vinamilk share (VNM) price once again soared by 5% (VND9,300) to the all-time high of VND196,000 at the first trading session of December.
Prior to that, VNM price unexpectedly rose from VND150,000 per share to VND180,000 after the 200-year old giant Jardine Matheson from Hong Kong spent nearly one billion dollar to collect VNM at both the auction and on the bourse at the price of VND186,000 per share.
Meanwhile, Sabeco shares (SAB), with the second biggest capitalization value, are now traded at VND340,000.
Foreign investors are buying more and more shares. The domestic cash flow has been going to shares with large capitalization value, but also to other shares in different business fields, including securities, real estate, construction, oil & gas, and aviation.
A series of shares have been climbing to new peaks, including Vincom Retail (VRE), Vingroup (VIC), GAS, Petrolimex (PLX), The Gioi Di Dong (MWG), Vietcombank (VCB) and Vietjet (VJC).
The capitalization value of the shares at the HCMC Stock Exchange has exceeded the US$100 billion threshold. If counting on the Hanoi Stock Exchange and UpCom, the total capitalization value of the Vietnamese stock market would be US$135 billion, or 62% of GDP.
With the strong rise of the market, Le Quang Tri from Tri Viet Securities predicted that the VN Index may reach the 1,000 point threshold this year and exceed the 1,200 point threshold before the end of the second quarter of 2018.
Some analysts have even predicted that the VN Index may break the 1,179 point record high set in 2007. They said all current factors are supporting the upward tendency of the VN Index.
These include the high 7.46% GDP growth rate in Q3. The targeted GDP growth rate of 6.7% for the year 2018 is now feasible. Vietnamnet