VietNamNet Bridge - Though the VN Index has lost 3.76 percent, the Vietnamese stock market is still listed among the best performing markets in the world.

A report from World Market Indices (Indexq) showed that Abu Dhabi and Israel, the best performing stock markets in the world, saw zero percent growth rate over the last month. 

Meanwhile, Vietnam, with the 3.76 percent decrease in the stock index, is still among the world’s best performing markets.

The closing VN Index on August 26 stood at 545.89 points, representing a 6.2 percent decrease compared with two months ago, when the government released Decree No 60 on lifting the ceiling on the rate of foreign ownership in Vietnamese enterprises.

Just one month ago, the VN Index was still at the year’s highest peak of 635 points, which, according to Indexq, was the fastest-growing index in the world at that time.

However, this gain could not be maintained as the index has lost 14 percent of its value within one month. 

However, stock prices have fallen over the world. The global stock market sustained a blow when the Chinese government began pursuing its policy on devaluing the yuan.

On the Chinese bourse, Shanghai Composite Index on August 25 for the first time since December 2014 dropped to below the 3,000 point threshold and dropped by 8.34 percent compared to earlier this year.

The US S&P 500 on the same day plunged to the deepest low since 2011.

As for Vietnam, the capitalization value on both the Hanoi and HCM City bourses decreased by $7.8 billion, just two weeks after the Chinese government devalued its yuan.

Nguyen Xuan Binh from Bao Viet Securities Company, when commenting about the stock uncertainties in the world market, said China was the ‘center’ of the ‘stock storm’.

“This is the story of the exchange rate. But the exchange rate is just a consequence. It reflects the macroeconomic uncertainties and China’s economy,” Binh said.

“Panic”, “Black Monday”, “dark days of Vietnamese stock market” were the phrases appearing in articles about the stock market in recent days. Vietnamese investors rushed to sell stocks away in their plans to flee from the market. 

However, many analysts still believe that there is no need to be worried about the stock index, while it is the right time to buy stocks as prices are ‘reasonable’ now. Investors have been advised to ‘remain optimistic amid worries’ about the market future.

The Vietnamese stock market began recovering on August 26 with the VN Index increasing by 16 points, or 3 percent.

Thanh Mai