Vietnam shares hit new milestone in document run

HANOI, Nov 25 (Reuters) – Vietnam’s benchmark inventory market index (.VNI) hit a contemporary document excessive on Thursday, topping the 1,500 level mark for the primary time and defying a stoop throughout most different Asian fairness markets.

The small frontier market has risen 36% this yr and analysts heralded the brand new excessive, pushed by banking and actual property shares, as an “unprecedented second”.

“In June, given the COVID-19 scenario, the rosiest situation we might consider is a year-on-year achieve of 30% for the VN Index in 2021, concentrating on 1,500 degree by yr finish,” stated an analyst at VNDirect Securities.

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Vietnam, constantly considered one of Asia’s fastest-growing economies, had been badly hit by the coronavirus, which disrupted its provide chains and hit staff in key industries.

Vietnam’s GDP contracted 6.17% within the third quarter of 2021, the sharpest quarterly decline on document, though the federal government expects GDP to increase 6.0% to six.5% subsequent yr.

The push to the inventory market was pushed partly by traders trying to park their money as different funding alternatives have been stifled by the crippling financial impacts of COVID-19, stated some analysts.

“Because of the impacts of the COVID-19 pandemic, the financial system’s functionality to soak up funding funds has declined considerably, and subsequently traders have chosen to place their cash within the inventory markets,” an analyst with PetroVietnam Securities Inc. stated.

“Traders will wait till not less than the pandemic to be beneath management to withdraw funds from the inventory markets for his or her different funding choices.”

Vietnam’s predominant index has a market capitalisation of practically $247 billion, about half of the worth of its counterparts in Indonesia and Thailand, the area’s largest economies.

Round 1.1 million new inventory buying and selling accounts had been registered in Vietnam in the course of the previous ten months of this yr, greater than the entire yr determine of 2020, official knowledge confirmed.

The federal government stated new buying and selling system can be launched to switch the present overloaded one within the second quarter subsequent yr to maintain up with the big inflow of traders.

($1 = 22,670 dong)

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Modifying by John Geddie

Our Requirements: The Thomson Reuters Belief Rules.

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