Home / Economy / Banking & Finance
Vietnam named world’s best-performing stock market in August
Hai Yen 18:25, 2020/09/02
The VN-Index ranked above Russell 3000, Nasdaq, or S&P 500, among others, in terms of growth in August.

At the close on August 31, Vietnam’s benchmark VN-Index stood at 881.65 points, a 10.43% increase against late July, making Vietnamese stock market the best performing ones globally in August, according to StockQ.

 Stock indexes with strongest growth rates. Photo: StockQ. 

As a result, the VN-Index ranked above Russell 3000, Nasdaq, or S&P 500, among others, in terms of growth. If the trading session in early September is included, the index expanded 11.69% and remained at the world’s top spot.

Mirae Asset Securities suggested the VN-Index’s high growth in August was thanks to investors’ positive sentiment and their experience in dealing with Covid-19 information.

The local stock market was given a boost from news related to the first Covid-19 vaccine made by Russia, or US stocks climbing to record highs ahead of an expectation for an expansionary monetary policy.

From the domestic front, investors have reacted positive with the government’s plan of releasing a second relief package worth VND90 trillion (US$3.84 billion) for businesses and people affected by the pandemic.  

Meanwhile, the Ministry of Finance is opening a draft circular for comments that contains provisions on intraday securities trading and short selling activity, a move expected to propel Vietnam’s stock market to emerging market status.

Liquidity on the Ho Chi Minh City Stock Exchange, home to the majority of large-caps, reached over VND110.23 trillion (US$4.7 billion), averaging VND5.2 trillion (US$222.1 million) per trading session.

MB Securities forecast the VN-Index would hover around 870 – 895 points in a baseline scenario, but could rise to 905 – 925 if favorable conditions emerge.

RELATED NEWS
TAG: Vietnam stock market VN-Index August covid-19 coronavirus nCoV pandemic Nasdaq S&P 500 Russell 3000
Other news
15:40, 2020/40/21
Covid-19 pushes Vietnam fiscal deficit to nearly 6% of GDP
Such a high fiscal deficit is due to low state budget revenue and increase in regular spending under the severe Covid-19 impacts.
10:58, 2020/58/20
Lack of credit culture poses risks to Vietnam bond market: ADB
A credible domestic rating agency is a critical missing jigsaw piece in the orderly development of a healthy sustainable bond market in Vietnam, stated the ADB.
12:32, 2020/32/16
Vietnam finance ministry pushes for speedier privatization of SOEs
Only seven state firms have completed their respective privatization process in the first nine months of 2020.
14:40, 2020/40/15
Vietnam spends over US$752 million on Covid-19 fight
The government has set aside VND12.57 trillion (US$542.2 million) to support 12.65 million people directly hit by the Covid-19 pandemic.
11:39, 2020/39/14
IMF trims Vietnam GDP growth forecast to 1.6% in 2020
The country would remain the only one with positive growth among five major economies in ASEAN, and its economic growth would rebound to 6.7% in 2021.
14:25, 2020/25/13
Stable outlook expected for Vietnamese dong
While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.