The VN-Index (VNI) increased 2.6% in August. At the beginning of the month (August 1st to 5th), the VNI declined 5.1% as selling pressure occurred across all sectors in line with the negative performance of the global stock market in the same period (S&P500: -4.8%; Nasdaq: -5.8%; DJI: -4.1%; Nikkei 225: -17.5%). 

However, the VNI quickly recovered towards the end of August (+8.1%) due to several factors including: (1) global equity markets rallied with S&P500: +8.9%; Nasdaq: +9.3%; DJI: +7.4%; Nikkei 225: +22.9%, (2) higher expectations about the removal of the "prefunding" bottleneck, which is a key criterion for the market upgrade by FTSE, (3) the appreciation of the VND supported market sentiment (the VND appreciated 1.6% against the USD in August), and (4) real estate stocks increased 4.5% in August as three amended laws (Land Law 2024, Housing Law 2023, and the Real Estate Business Law 2023) took effect from August 1, 2024. As of August 30, the VNI closed at 1,283.9 (+2.6% MoM). Since the beginning of the year to end-August, the VNI increased 13.6%, outperforming regional markets such as the Philippines’ PCOMP (+6.9%), Indonesia’s JCI (5.5%), and Thailand’s SET (-4.0%).

Powered by Froala Editor