2018 a banner year for local equity market

Hanoi (VNS/VNA) – The net value of foreign capital flowing into Vietnam’s equity market in 2018 hit 2.8 billion USD, according to State Securities Commission Vice Chairman Pham Hong Son.

That figure was almost 2.3 times the figure of 1.23 billion USD in 2017 and set up a new record high of net foreign purchases since 2008, Son said at a recent meeting, adding foreign capital had started to leave other Southeast Asia markets.

The total value of foreign investment in Vietnam as of the end of 2018 was estimated at 32.8 billion USD.

In 2018, the global economy saw strong growth amid worries about uncertain geo-political conditions, the US Fed’s rate hikes and trade tensions between the biggest economies.

Those worries were reflected in the volatility of global markets, including in Vietnam, with many ups and downs, the SSC Vice Chairman said.

“Thanks to the strong growth of the domestic economy and management of both Government and the finance ministry, the Vietnamese equity market saw increases in size and liquidity,” Son said.

The value of the stock market at the end of 2018 hit 3.9 quadrillion VND (167.8 billion USD), up 12.7 percent year on year and equal to 71.6 percent of the country’s total gross domestic product (GDP). The figure even beat the target set at 70 percent of the country’s total GDP for 2020.

Average trading value in each session of 2018 was estimated at 6.5 trillion VND (279.6 million USD), up 29 percent year on year.

Total value of the bond market was 1.12 quadrillion VND, up 10.5 percent year on year and equal to 20.3 percent of 2018 GDP, and daily average trading value of the bond market reached 8.83 trillion VND.

The derivative market also saw strong liquidity growth after its first year of operation, with more than 21,600 contracts traded.

At the end of 2018, total corporate earnings rose 20.5 percent in revenue and 24.9 percent in profit year on year. Securities companies saw their post-tax profits rise 40 percent year on year.-VNS/VNA