$1 billion within 3 days: stock market records 10-year high

Created 01 June 2017
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Billions of dollars have been poured into the stock market within a short time, returning the market to its peak of 10 years ago. 

Although records have been beaten, the market is different from the ‘bubble period’ in 2007. In early May, there were more sellers than buyers, a time when many people often buy.

A number of shares have continued rising in price after hitting new records. The VN Index is still on the rise after reaching a 9-year peak. Analysts said it has increased by 11 percent so far this year, or two times higher than the same period of 2016.

The trading value is now at a record high with the average trading value of over VND5 trillion in each session in May. 

There were some trading sessions where the trading value reached VND7 trillion, or 2-3 times higher than some years ago and 1.5-2 times higher than the average level in 2016.

As such, within 3-4 days, the stock market witnessed $1 billion worth of transaction value on the Hanoi and HCMC bourses.

Analysts said the liquidity record of VND10 billion per trading session or $1 billion for two sessions is reachable as the stock market activity increases day after day. Most investors believe that it is now a good time to join the market.

Though the stock market increased rapidly in the first five months of the year, there has been no sign showing the decline in the cash inflow. 

Foreign investors tend to increase purchases with the trading value of several hundred billions of dong in each trading session.

The market’s capital scale has also soared. The number of shares has increased by 10 times compared to 10 years ago. The capitalization value has increased by hundreds of times thanks to many big names in the market such as Sabeco, Habeco, VietJetAir and ACV. 

The VN Index has been standing firmly at 700 points and is marching towards the 750 point threshold.

Analysts said there is a basic difference between the current busy market and the 2007 hot market. 

Le Quang Tri from Tri Viet Securities said the current cash flow is sustainable, while the market confidence is high, which is a contrast to the hot money flow and the ‘following-the-crowd investment’ movement in 2007.

Tong Minh Tuan from VCB Securities commented that the most important thing is that the stock market has more good commodities this year to offer. 

“Foreign funds are very excited and they have taken action. I think the market would be even more busy towards the end of the year,” Tuan said.

 

Source: VietNamNet

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