The Vietnam Stock Index or VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, rebounded this week as it surpassed the threshold of 630 points, closing at 632.27 points on Thursday.
Investors'confidence in that the Vietnamese economy would not suffer much from Britain's exit of the European Union (Brexit) played a key role in propping up the market this week, said local stock experts.
According to Nguyen Mai, Chairman of the Vietnam Association of Foreign-Invested Enterprises, Vietnam will not suffer much from Brexit as the country is a small trade partner of Britain, and a very small amount of foreign direct investment projects in the country comes from British companies.
Additionally, emerging markets in the Asia-Pacific region, including Vietnam, will remain at the center of the world's economic development and draw capital from the European markets when Britain leaves the EU, according to the Maritime Securities Company.
Large-cap stock, including insurer Bao Viet Holdings (BVH), property and retail firm Vingroup JSC (VIC), banker Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Vietnam (BID), and dairy firm Vinamilk (VNM) were among best gainers which contributed to the rise of the index.
The VN-Index closed at 620.77 points on Friday, down 11.5 points, or 1.82 percent, from the previous trading day's close. From the previous week's closing session, the index won 1.52 points, or 0.24 percent.
During the week, the index experienced three ups and two downs, posting the highest level of 632.27 points on Thursday, and the lowest level of 620.77 on Friday. In comparison, it ranged between 619.25 points and 627.02 points in the previous week.
About 270.167 million shares worth 4.809 trillion Vietnamese dong (VND) (220.16 million U.S. dollars) changed hands on the Ho Chi Minh City Stock Exchange on Friday, an increase of 130.69 percent in volume and 99.41 percent in value as against Thursday.
Brexit will partly impact the global stock market and the local bourse in the short term, so the index may fluctuate between 570 and 580 points in the next trading days. However, Brexit will not impact too much the bourse in the medium and long term, predicted KIS Securities Company.
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