Vietnamese stock market posts highest earnings in the world
An investor watches stock prices on a smartphone at Yuanta Securities Company in District 1, Ho Chi Minh City, in March 2021. Photo by VnExpress / Quynh Tran.
Vietnam’s benchmark VN-Index jumped 34.51% in the first half of this year, marking the largest increase in the world.
Abu Dhabi finished second with a 33.06% rise in its stock market, followed by Austria with 32.65%, according to the Chinese stock exchange database StockQ.
With an increase of five consecutive sessions over the past week, the VN-Index reached 1,374.05 points last Friday, up 4.06% from the same day last week. Vietnam ranked third among the most active markets last week after Argentina and Hungary, according to the China Stock Exchange Database.
Plentiful cash flow, an ever-growing number of new investors, and immediate action to reduce congestion have propelled the stock market.
The number of new investors entering the stock market in May hit a new monthly record, with over 113,000 new trading accounts opened.
The continued growth of the VN Index has shattered most forecasts made by national securities companies.
Citing geopolitical risks and complicated developments from the Covid-19 pandemic, the Viet Dragon Securities Company (VDSC) predicted that the VN Index could peak at 1,272 points, which equates to an increase of around 15 % year over year.
Other securities firms like Ho Chi Minh Securities Corporation (HSC), Vietcombank Securities (VCBS) and Viet Capital Securities (VCSC) made similar forecasts for the index reaching 1250-1 280 points.
The index rose rapidly, pushing the price / earnings (P / E) ratio to 18.8. While this figure is still much lower than that of other Southeast Asian countries including the Philippines, Indonesia and Thailand, it shows that the Vietnamese stock market is maturing.
In a recently released strategy report, VNDirect Securities said, “The market is no longer undervalued but not too high, which means companies need more time to improve their bottom line and pull valuation to a higher level. more attractive. “