VN Index

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The VN index - short for Vietnam Stock Index - is a capitalization-weighted index comprising all equity listings on the HoChiMinh Stock Exchange, Vietnam's larger and more established market. It has shed much of its value since 2008's global credit crisis but is expected to recover soon as economic growth picks up.

Background

The VN Index was launched by the HoChiMinh Stock Exchange (HSX) in July 2000 with a base value of 100 and denominated in Vietnamese dong. It is considered the benchmark index for larger, more established stocks and blue chips compared to the newer, smaller-cap listings on the HaSTC Index at the electronic Hanoi Securities Trading Center.[1]

Rebound?

The value of the VN Index grew rapidly for several years until 2008, when it lost more than two-thirds of its value in the wake of a global financial meltdown.[2] In early February 2009 it again slid below the key psychological 300 mark[3] and in late March 2009 the index was trading around the 265 mark. However, several Vietnam stock analysts expect the VN Index to ally back over 300 in 2009, some by the end of the year[4] and some by the end of April[5] on anticipated improved investor sentiment.

Latest news

Optimism was looking justified by late March 2009 as trading volumes on the HSX jumped sharply, recording a one-year high on March 18 of 23.72 million shares, and pushing the VN Index above 273 compared around 240 earlier this month.[6] In the following days the VN Index stabilized at around the 265 level.

References

  1. HO CHI MINH STOCK INDEX. Bloomberg.
  2. Investor Report December 2008. Vietnam Holding.
  3. VN-Index drops below 300. Vietnamese Ministry of Finance.
  4. VN Index forecasted to increase by 17.6% by end of the year: says HSBC. IntellAsia News Online.
  5. VN Index may rally 19% as sentiment improves, PXP says. Donga Securities.
  6. City market rallies for another day. VietNamNet Bridge.