Following positive developments in previous trading sessions, stock trading floors were lit green on August 25 with strong demand. The bluechips such as The Gioi Di Dong, Bao Viet, Techcombank, Petrolimex, Vingroup, Sabeco and Vinamilk saw prices increase.
PLX shares of Petrolimex, the biggest petroleum distributor in Vietnam, increased by VND1,900 in price to VND50,400 per share. As such, the PLX price increased by 48 percent over the last five months, from VND34,000 per share.
MWG shares of The Gioi Di Dong also soared from VND60,000 per share in early April to nearly VND90,000.
The VN Index increased by 100 points just over the last month to VND874.12 points. It has increased by 220 points, or 34 percent, from a low of 653.23 points seen on March 24.
The stock market continues to rise when cash flow is strong, bank loan interest rates are low, and other investment channels, including gold and real estate, are no longer attractive.
Meanwhile, cash flow from foreign institutions is ready to be poured into Vietnam, especially into the shares of leading enterprises.
|The stock market continues to rise when cash flow is strong, bank loan interest rates are low, and other investment channels, including gold and real estate, are no longer attractive.|
Huynh Minh Tuan from Mirae Asset commented that Taiwanese capital is flowing, while domestic capital is also profuse. There are signs of strong growth in Q4 which will create an impetus for development next year.
He said investors are optimistic about Vietnam’s capability of controlling the Covid, while businesses have adapted to the new circumstances.
Also according to Tuan, Vietnam’s stocks are the second cheapest in Southeast Asia, just below Indonesia’s. Therefore, it is easy to attract cash flow in the region.
The HCM City Stock Exchange (HOSE) reported that Eneos Corporation has registered to buy 13 million PLX shares and the transactions will be made August 27 – September 25. The person involved in the transaction is Toshiya Nakahara, a member of Petrolimex’s board of directors and a high-ranking executive of Eneos Corporation. This is a subsidiary of JX Nippon Oil & Energy Vietnam, a big shareholder of Petrolimex.
According to Tuan, the fact that a Taiwanese fund successfully mobilized VND4 trillion worth of capital to invest in Vietnam is a positive sign. The fund will disburse money for the listed businesses with high growth potential. The investment portfolio also comprises VFMVN Diamond EFT, an VN-Diamond Index-simulated ETF certificate.
Foreign investors last week bought more than sold, by VND1.7 trillion worth, of VHM shares of Vinhomes.
In the last three months, Dragon Capital has bought 16 million VCB shares of Vietcombank. VEIL (Vietnam Enterprise Investments Limited), the biggest fund managed by Dragon Capital, is holding 30.5 million VCB, worth $108 million.
Arisaig Asia Consumer Fund Limited has become a noteworthy name in Vietnam’s stock market with its move of continuously increasing its ownership ratio in The Gioi Di Dong, the mobile phone distribution chain.
It is estimated that it is holding 16 million MWG shares, worth VND1.4 trillion.
In mid-June, Bloomberg reported that the KKR fund wants to triple its investment scale in Vietnam in the next 10 years.
Investors are concerned about the stock market performance, which has become unpredictable because of the pandemic.
Some government officials say Vietnam needs to attract ‘eagles’, as it calls big and 'super-big' investors, to help upgrade the stock market.