Vietnam stocks fall 2.2pct in first week after FTSE market upgrade
HANOI: Vietnam's benchmark fell 2.2 per cent in the first week after the country's formal inclusion in FTSE Russell's secondary emerging market index, according to LSEG data.
Vietnam's benchmark VN-Index experienced a 2.2% decline in its first week following its formal inclusion in FTSE Russell's secondary emerging market index. This downturn, which wiped out about US$7.4 billion from the market value, was driven by foreign investors selling shares in anticipation of the reclassification, despite expectations of increased exposure.
The index's decline was the result of a net 2.8 trillion dong worth of shares being sold by foreign investors, compared to a net 2.7 trillion dong purchased in the previous week. While the upgrade is anticipated to redirect up to US$6 billion into Vietnam over time, the transition will occur gradually through four stages by 2027.
Analysts suggest that interest rates remain the most critical factor influencing the equity market, and the transition is expected to take time. Vietnam's benchmark has underperformed compared to other Southeast Asian markets in 2024, with a 0.5% loss this year, lagging behind Thailand's 27% gain and Singapore's 23% gain.
Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
