Stock market capitalisation reaches highest level

Thursday, 2017-03-09 09:23:32
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The stock market is increasingly asserting its role and position on the Vietnamese economy.
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NDO – Up until now, market capitalisation on Vietnam’s stock exchange has recorded nearly VND2.3 quadrillion (over US$99 billion), equivalent to 50.3% of GDP, up 16% compared to the end of 2016 and reaching the highest level ever since the establishment of Vietnam’s stock market.

The figures were announced by Chairman of the State Securities Commission Vu Bang at a press conference on Vietnam’s stock market situation held in Hanoi on March 9.

Speaking at the event, Chairman Bang said that in the context of a stable macro-economy and strengthened economic restructuring, the Government’s continuous measures to improve the business environment and support policies for the stock market development has resulted in positive impacts, contributing to advancements in Vietnam’s stock market in the first two months of 2017.

As of March 6, the VN Index closed at 716.29 points - the highest level in ten years, up 7.7% over the end of 2016. HNX Index closed at 86.55 points, up 8% over the end of 2016.

Regarding listing, by the end of February, the market had 708 shares and listed fund certificates on both bourses, along with 485 shares registered on UPCoM transaction with total listing value reaching nearly VND778 trillion, up 7% from the end of 2016.

The market liquidity has been improved with the average trading session valued at nearly VND7.4 trillion a session, up 49% over the same period in 2016 and up 6.6% compared to the average of last year, of which, trading of government bonds increased by 7% and stock trading rose by 6% over the previous year.

Particularly, in the first month of 2017, foreign capital inflows onto the domestic market reached more than US$18.4 billion, the highest ever.

As late as 2016, expectations on an increase in US interest rates, as well as a rise in the dollar value, made global investment funds shift their capital out of emerging stock markets, including Vietnam.

However, since the beginning of this year, foreign investors have reached record highs in buying in both stock and bond markets. Specifically, foreign investors have bought a total of over VND1.5 trillion of shares and fund certificates and nearly VND6 trillion worth of bonds.

According to Bang, foreign investors’ continuous high value in bond buying was a very good sign, reflecting the confidence of foreign investors in the Vietnamese economy.