“If I make a bank deposit, I would get an interest rate of a maximum 7 percent for six months. Meanwhile, with the investment in STB, I expect profit at 15-20 percent at minimum,” he said.

Huu bought STB when the share price was at VND9,500 per share. And if he had sold the shares some days later, he would have made a profit of 10 percent.

According to Nguyen Duc Hung Linh from the Saigon Securities Incorporated (SSI), the cash flow to the stock market mostly comed from big investors who prepare in financial capability and have big targets. 

The VN Index has for the first time in the last nine years has regained the 700 point threshold, while the trading value has reached VND4.5 trillion per daily trading session and foreign investors’ portfolio value has reached the highest peak.

On May 15 morning, the stock market witnessed a record morning trading session with VND3.1 trillion worth of shares were traded. Investors were excited when seeing 56 shares hitting the ceiling price level.

On May 16, the trading volume increased to VND3.659 trillion, an increase of 18 percent, the highest trading volume in the history of the Vietnamese market.

“There is so much money from new sources and new investors who are more hot-headed than old investors,” the representative of a closed-end fund said.

Nguyen Tri Hieu, a renowned banking expert, at a workshop on the stock market held some days ago, commented that this was good news for Vietnam, but investors have been advised to be cautious.

“The index has been escalating rapidly. If the trend continues, I think the VN Index would reach the 740 point threshold or even higher,” Hieu said.

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.

Other analysts also commented that they were optimistic about the market in 2017-2018, because there would be more good shares on the market once the state divests from several profitable companies.

Ngo Tri Long, a renowned economist, commented that in 2016, Vietnam was one of the five strongest markets in SE Asia.

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Chi Mai