The Vietnam Stock Index or VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, surged to 577.11 points on Thursday.
Investors' optimism about the latest move of the U.S. Federal Reserve (Fed) was the main motivation to prop up the market this week, according to many local stock experts.
After the FED on Wednesday decided to raise the benchmark interest rate by 25 basis points, the first interest rate increase since 2006, the index rebounded. The news is a good signal for the stock market, putting an end to investors' fear. Earlier, they feared that they would suffer losses in stock assets if the Vietnamese dong weakened against the U.S. dollar.
The stock market also received strong boost from many large-cap stocks, including big insurers, banks, real estate developers and hi-tech firms, such as PVI Holdings, Bao Minh Insurance Corporation, the Bank for Investment and Development of Vietnam, Vietinbank, Vietcombank, Vingroup and FPT Corporation.
The VN-Index closed at 568.18 points on Friday, down 8.93 points, or 1.55 percent, from the previous trading day. From the previous week's closing, the index won 4.75 points, or 0.84 percent.
During the week, the index experienced three ups and two downs, posting the highest level of 577.11 points on Thursday, and the lowest level of 562.22 points on Monday. In comparison, it ranged between 561.05 points and 574.15 points in the previous week. About 211.301 million shares worth 3.979 trillion Vietnamese dong (VND) (181.77 million U.S. dollars) changed hands on the Ho Chi Minh City Stock Exchange on Friday, an increase of 132.76 percent in volume and 141.54 percent in value against Thursday.
According to analysts from BIDV Securities Corporation, the market will range between 580 and 585 points by the end of this year, boosted by big firms such as Vietcombank, Vingroup, Bao Viet Holdings and FPT Corporation.
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