The VN-Index recorded the best
weekly gain in the past eight years from November 20 to 24, closing at an
almost decade high of 935.57 points, over 5 percent higher than the previous
week.
In the global arena, Vietnam’s benchmark index was the second best
performer last week and ranked third since the start of 2017, with a growth of
nearly 41 percent, behind Mongolia
(91 percent) and Argentina
(60 percent), according to Bloomberg’s data.
Photo for illustration: vnmedia.vn
Driving the market was the investor
expectation that the market would maintain the upward trend through the
year-end with a target of 1,000 points.
Investors increased money being
poured into the market, with the trading value averaging VND 4.6 trillion roughly (USD 202 billion) per session last week, up 6.5 percent over the
previous week.
Money began spreading to small- and
mid-cap companies instead of focusing on several blue chips, which according to
many analysts will support the market in case a correction takes place.
The local stock market is backed by
strong cash flows from both domestic and foreign investors thanks to successful
mega deals this month, such as the stock debut 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 Investment Corporation (SCIC) will accelerate its
divestment of State capital from big companies, including FPT Corp, Vinaconex,
Binh Minh Plastics and Tien Phong Plastics. SCIC will likely announce the
initial selling prices of these companies this week.
In addition, Sabeco, known as Vietnam’s biggest brewer, held its second
international roadshow in London
on November 27 to provide an investment opportunity in the company after the
government decided to reduce its holding here.
These stocks are expected to
continue their growth in the near future and translate into a spillover effect
to the whole market.
Source: VNA