In January, Vietnam stock market continued to remain an attractive investment channel with investors pouring in VND335.9 trillion (US$14.6 billion) and 14.78 billion shares changed hands, up 17.37% and 8.71% month-on-month, respectively.
|Stock market is expected to rebound strongly after Tet holiday. Photo: Cong Hung|
This average transaction value of VND16.8 trillion (US$730 million) for 739 million shares per trading session, representing increases of 34.97% month-on-month in value and 25.01% in volume.
Compared to the same period of last year, liquidity surged a whooping of 291.04% in transaction volume and 334% in value.
In January, foreign investors were involved with transaction value of VND64.2 trillion (US$2.78 billion) accounting for 9.57% of the total in the stock market. While they remained net sellers with VND3.4 trillion (US$147.7 million), the figure was down 16.93% against last month.
This came as foreign investors went for bottom-fishing strategy during a strong volatile period of the market that witnessed the benchmark Vn-Index to suffer a historic slump of 73.23 points late January, or a decline of 6.67% from the previous session, to 1,023.94.
However, since then, the market has been on a strong recovery trend and ended at 1,111.29 at the close yesterday [February 3], up 35.76 points or 3.32% from a day earlier.
As the Vn-Index’s free-fall occurred on the same day of the Covid-19 resurgence in Vietnam, Lan Anh, a broker expert at SSI Securities Corporation, told Hanoitimes that the government’s drastic measures to keep the situation under control would help further boost the market.
“Stable economic outlook and positive business performance of public firms in 2020 would gradually stabilize the market and even help it rebound strongly after the Tet holiday,” said Mrs. Lan Anh.
As of late January, total number of shares listed on the stock market amounted to 101 billion with the market capitalization of over VND3,900 trillion (US$169.3 billion), up 3.32% month-on-month and equivalent to 62.69% of the GDP in 2020.