Vietnam’s stock market rebounds, recoups $4.4 bln

By Minh Son   February 7, 2018 | 01:54 am PT
Vietnam’s stock market rebounds, recoups $4.4 bln
VN-Index rose over 3 percent to 1,043 points as of 9:30 a.m. Wednesday. Photo by VnExpress
Investors are advised to remain calm and avoid following a crowd mentality when global markets are down.

After plummeting for two consecutive sessions, the benchmark VN-Index on the Ho Chi MinhStock Exchange (HSOE) rose 2.86 percent, or 23 points to 1,040 points on Wednesday.

The smaller HNX-Index on the Hanoi Stock Exchange also climbed over 3 percent.

Shares in banks, insurance and securities companies saw the biggest rebound.

The recovery on Wednesday morning has helped the market recoup some VND100 trillion ($4.4 billion) after it dropped nearly $14 billion on Monday and Tuesday.

On the HOSE, Vietnam's main bourse, 218 shares rose and only 24 tumbled on Wednesday morning.

Tran Dung, chairman of the State Securities Commission of Vietnam, blamed the steep fall in the two previous sessions on declining international markets and panic selling following a strong market performance in 2017 and at the start of this year.

Dung said investors should remain calm and avoid following a crowd mentality when global markets are down.

The local stock market is expected to witness stable growth this year amid smooth macroeconomic development, he added.

However, some analysts said the growth on Wednesday is not a signal for the market’s stable recovery. Risks may occur in the short term.

In the U.S, stocks posted sharp gains in another wild trading session on Tuesday, as indexes rebounded from the biggest one-day drops for the benchmark S&P 500 index and the Dow Jones Industrial Average in more than six years that stalled the market’s record run, according to Reuters.

In Asia, shares reversed their earlier gains on Wednesday as investors dumped U.S. stock futures for safer harbors, a sign market participants remain jittery after this week’s global markets rout, said Reuters.

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