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Vietnam's stock exchange growth ranks 2nd globally
VN-Index, Vietnam's benchmark stock exchange index, increased 35.5 percent in the first four months of this year, ranking second among world's highest growth indexes, reported local online VNExpress on Tuesday.
The newspaper quoted results from a recent survey by the regional news website The Telegraph, which said the VN-Index is currently traded around 470 points, posting a growth of 35.5 percent, which stands just behind the EGX 30 of Egypt with 36.1 percent, and ahead of the Karachi 100 of Pakistan with 28.8 percent.
VN-Index increased four times during 2006-2008, conquering the peak of 1,100 points before reducing sharply during the global economic crisis in 2008, said the report.
With its abundant and cheaper labor force, long-term investors had a reason to trust in the growth of the Vietnamese stock exchange, said insiders.
The survey also revealed that Vietnam's stock exchange is still in its prime operation, with a small scale, strong fluctuations and low liquidity. The over 35 percent growth over the past four months was partly due to the strong decline last year.
In 2011, the Vietnamese government applied several measures to tighten the monetary policy to curb inflation rising to two digits, which narrowed the stock exchange market and deepened it to 350 points. At present, the country's macro-economic data have been improved and the stock exchange market is on its recovery.
Analysts said the government's support package of 1.4 billion U.S. dollars to "save" domestic enterprises through deferment and reduction of the corporate tax and the value-added tax, and reduction of the lending rate cap down to 15 percent from over 20 percent have strongly boosted the domestic stock exchange in early May transaction sessions. The VN-Index surged to its 12-month high record of 488.07 points on Tuesday, amid investors' rising confidence.
On the contrary trend, European countries whose stock exchange index mostly decreased during the four-month period included the Republic of Cyprus with 24.7 percent; Spain with 19.7 percent and Italy with 7.8 percent. Meanwhile, Argentina (10.5 percent) and Sri Lanka (11.5 percent) represented those declining indexes in Latin America and Asia respectively.
xinhuanet
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