The smaller of Vietnam’s two stock exchanges dropped to its lowest close in its six-year history last week as the country continues to lose the confidence of foreign and domestic investor. The Hanoi Stock Exchange closed down 5% to 77 — below the low point of global economic crisis two years ago.
After a decline over the past year of more than 50%, the exchange now has a total capitalisation of $5 billion, and foreign investors are interested in just a few of its largest stocks, including Asia Commercial Bank.
Vietnam’s larger exchange in Ho Chi Minh City accounts for 85% of the country’s market capitalization and is down 10% for the year while the rest of Asia is up 30%. Of course, believers in Vietnam’s long-term prospects see this as a buying opportunity.
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