- 2021-09-06T00:00:00
- Strategy
Global markets wobbled on weak Chinese data and rising COVID-19 infections, prompting fears about global economic growth. The Dow Jones (DJI) and S&P 500 fell 1.1% and 0.6% during the week of August 16-20, respectively, while the MSCI Emerging Markets Index (MXEF) dropped 4.7%. Nevertheless, markets recovered toward month-end with the DJI, S&P 500 and MXEF closing August up 1.2%, 2.9% and 2.4%, respectively.
The VN-Index (VNI) experienced a short, sharp correction in August on rising COVID-19 cases and strict social distancing measures. The VNI continued its recovery trend that began in late July as it increased 4.8% in the first three weeks of August. However, a dramatic drop of 5.6% on August 20 and 21 wiped out all of the month’s gain as investors reacted to the news of HCMC tightening social distancing restrictions and requiring citizens to “stay where they are” to contain the spread of COVID-19. However, the VNI recovered slightly at the end of the month, closing the month at 1,331.5 points (+1.6% MoM). Since the beginning of the year, the VNI has increased 20.6%, surpassing key surrounding markets, including Thailand’s SET (+13.1%), Indonesia’s JCI (+2.9%) and the Philippines’ PCOMP (-4.0%).
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