Illustrative image

The stock market has witnessed strong liquidity in the last consecutive trading sessions. Capital continues flowing into the market, though listed companies have reported unsatisfactory business results because of Covid-19.

Some positive information about the US finance market could help US President Donald Trump gain some advantage in the race to the White House. This has prompted investors to bet on the possibility of the US-China trade war lasting longer.

In Vietnam, cash flow continues to pour into industrial real estate shares. Investors believe that FDI to Vietnam will soar in the time to come as multinationals try to diversify their supply chains.

Once foreign investors leave China for Vietnam and set up factories here, the demand for land and workshops in IZs will increase, which will bring benefits to IZ developers.

On the morning of August 28, LHG shares of Long Hau JSC continued an upward trend, increasing by another 5.9 percent to VND30,300 per share after rising by 7 percent for each previous session.

Analysts said though Vietnam has to compete with other regional countries in attracting FDI, the future for IZ developers is still bright, especially ones with large land funds, including rubber companies.

As such, LHG price has increased threefold since early April, from VND10,000 per share to VND30,000 per share.

SIP shares of Saigon Investment JSC also saw price increase of 2.4 percent to VND95,000 per share after increasing by 3.7 percent the last session. Meanwhile, it was traded at VND60,000 per share only in March.

Itaco, owned by Dang Thi Hoang Yen and Dang Thanh Tam, two well known businesspeople, also saw the price double from VND2,000 to VND4,570 per share.

Analysts said though Vietnam has to compete with other regional countries in attracting FDI, the future for IZ developers is still bright, especially ones with large land funds, including rubber companies.

In the long term, Vietnam is believed to be a potential market and attractive destination for foreign investors thanks to its high population, geographical position in the region, and advantages in maritime transport.

The Q2 finance reports of industrial real estate firms showed big profits. SIP reported that post-tax profit increased by eight times compared with Q1 to VND371 billion. Meanwhile, profit made by Sonadezi increased by 52 percent.

The VN Index on August 28 surged to the 880 point threshold thanks to the strong rise of some bluechips. MWG shares of The Gioi Di Dong saw the price increase by VND3,800 per share to VND92,700, and Masan shares by VND1,500 to VND55,100.

Mirae Asset predicted that the VN Index may regain the 900 point threshold by the end of 2020, as Vietnam is benefiting from global supply chain restructuring. 

V. Ha

Will the VN Index recover after Covid-19?

Experts all think the appearance of a new cash flow for bottom fishing will help the stock market recover after a strong correction during Covid-19.

VN Index falls amid Covid-19 fears

Securities companies have launched many support packages and incentives to retain investors while waiting for state management agencies to apply measures to revive the stock market.