With many bustling trading sessions, the average liquidity on the HCM City and Hanoi stock exchanges (HOSE and HNX) reached VND3,100 billion ($139 million)/session on average in July.

The VN-Index also broke the threshold of 640 points to reach the highest level since 2008. At times the index hit almost 681 points.

Ending the last trading session in July, the VN-Index jumped from 632 to 652 points, representing a 3% increase.

The cash flow into the stock market not only came from domestic investors but also foreign investors. July was the top month for purchasing of foreign investors since the beginning of 2016.

There were a total of 21 trading sessions in July on the HCM City Stock Exchange (HOSE). Foreign investors made only 3 selling session and 13 purchasing sessions, with nearly 64 million shares, worth VND1,197 billion ($53.6 million), over nine times higher than VND131 billion ($6 million) in June.

On the Hanoi stock exchange (HNX), foreign investors purchased 8.7 million shares in July, worth nearly VND71 billion ($3 million).

In both bourses, foreign investors bought nearly 73 million shares, worth VND1,268 billion ($56.8 million), 4 times higher than VND306 billion ($14 million) in June.

The shares that were strongly purchased by foreign investors include HPG of Hoa Phat Group, PVT, PVS, and VND while those of strong sales are SHB, VNM, MSN, and VNR.

Securities experts have said that Vietnam’s stock market has been in a rising trend since 2012.

The HCM City Securities Trading Company (HSC) forecasts that the VN-Index will reach 700 point at the end of 2016.

Mr.  Le Duc Khanh, Director of Investment Strategy of Maritime Bank Securities Company (MSI), said that Vietnam’s stock market was the bright spot in the region in attracting foreign investment.

Currently, in addition to public debt problems, the macroeconomic signals of Vietnam are pretty good; its GDP growth is a bright spot in Asia. The P/E of the stocks in Vietnam is still lower than that of other countries in the region.

(Source: VNN)