VN-Index among world’s most overbought indexes

By Dat Nguyen July 26, 2023 | 05:14 pm PT

An investor looks at stock prices on a smartphone at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Vietnam’s benchmark VN-Index is among the most overbought indexes globally as it has surged 18% this year.

Its 14-day relative strength index rose to almost 80 on Friday, exceeding the level of 70 which is typically seen as overbought, Bloomberg reported.

This is the highest level recorded since January 2021.

The relative strength index tracks the velocity of a security’s price movement.

Vietnam’s benchmark relative strength is also higher than all but five of the key national indexes tracked by Bloomberg. Among those with higher relative strength index are Sri Lanka and Hungary.

VN-Index is now at around 1,197 points, the highest since September last year thanks to a surge in the last three months.

Brokerage VNDirect expects it to reach 1,300 points this year as the economy shows signs of recovery in the second half.