VN-Index was named among the top three fastest growing markets in the world (Photo: VNA)

Hanoi (VNA) – Vietnam’s stock market has something to cheer about, as the VN-Index was named among the top three fastest growing markets in the world.

The VN-Index recorded the best weekly gain in the past eight years from November 20 to 24, closing at an almost decade high of 935.57 points, over 5 percent higher than the previous week.

In the global arena, Vietnam’s benchmark index was the second best performer last week and ranked third since the start of 2017, with a growth of nearly 41 percent, behind Mongolia (91 percent) and Argentina (60 percent), according to Bloomberg’s data.

Driving the market was the investor expectation that the market would maintain the upward trend through the year-end with a target of 1,000 points.

Investors increased money being poured into the market, with the trading value averaging 4.6 trillion VND (roughly 202 billion USD) per session last week, up 6.5 percent over the previous week.

Money began spreading to small- and mid-cap companies instead of focusing on several blue chips, which according to many analysts will support the market in case a correction takes place.

[Infographics: Stock market capitalisation hits record]

The local stock market is backed by strong cash flows from both domestic and foreign investors thanks to successful mega deals this month, such as the stock debut of Vincom Retail and heavy investment of Singapore’s Jardine Cycle & Carriage in Vinamilk through a share purchase.

This trend is forecast to uphold, given the State Capital Investment Corporation (SCIC) will accelerate its divestment of State capital from big companies, including FPT Corp, Vinaconex, Binh Minh Plastics and Tien Phong Plastics. SCIC will likely announce the initial selling prices of these companies this week.

In addition, Sabeco, known as Vietnam’s biggest brewer, held its second international roadshow in London on November 27 to provide an investment opportunity in the company after the government decided to reduce its holding here.

These stocks are expected to continue their growth in the near future and translate into a spillover effect to the whole market.-VNA