The State Securities Commission (SSC) has reported that Vietnam was the second-fastest growing stock market in the first half of the year, despite the fourth Covid-19 outbreak.
SSC Chair Tran Van Dung (left) and Deputy Minister of Finance Huynh Quang Hai
The VN Index reached new peaks. As of June 30, the VN Index had climbed to 1,408.55 points, up 27.6 percent over late 2020. The liquidity in the share market continued booming, reaching $1 billion per trading session threshold thanks to domestic cash flow, which was leading the market.
The number of new trading accounts increased by 58 percent over last year.
The share market capitalization value also increased, reaching VND6.838 trillion as of June 30, or $293 billion, up by 29.2 percent ($66 billion) compared with late 2020. The figure was 8.7 percent higher than the GDP of the economy.
The total value of securities listed or registered for trading had reached VND1.58 trillion, up by 4 percent over late 2020 with 753 shares and fund certificates listed at the two stock exchanges and 907 shares registered on UpCom.
Deputy Chair Pham Hong Son said in the context of negative impact from Covid-19, Vietnam was praised as a ‘bright spot’ of the panorama about the global economy. The World Bank has predicted a 6.6 percent GDP growth rate for Vietnam in 2021, the highest rate in ASEAN.
The bond market was stable, with liquidity of VND11.765 trillion per trading session, up by 13.2 percent. The total capital mobilized in the stock market was estimated at VND176.745 trillion, up by 65 percent over the same period last year.
Derivatives continued to be an effective risk prevention tool with the average trading amount of 188,865 contracts per trading session, up by 20 percent over the last year.
The stock market had a new product - 10-year government bond futures contract, which was officially put into transaction on June 28. Moreover, covered warrants also attracted an increasingly high number of investors.
Of the total mobilized capital of VND176.745 trillion, the capital mobilized through share issuance and equitization was estimated at VND26.857 trillion ($1.15 billion), up by 197 percent, and through corporate bond issuance to the public VND8.394 trillion, down by 23 percent.
Meanwhile, the capital mobilized for the state budget through government bonds increased by 63 percent to VND141.493 trillion.
Securities companies had a prosperous H1 with turnover increasing by 57 percent and profit by 92 percent compared with H1 2020. The operation of fund management companies was stable with total managed assets increasing by 20 percent over the end of 2020.
SSC granted licenses to four new investment funds, raising the total number of funds to 58. The total net asset value of the funds increased by 30 percent over late 2020.
Stocks of technology companies are selling very well in the Vietnamese stock market.
All factors are pointing to a positive prospect of Vietnam’s stock market by the end of this year.