The Vietnam Stock Exchange, which is the overarching body that manages the Hanoi Stock Exchange, the Ho Chi Minh City Stock Exchange, and the Unlisted Public Companies stock exchange, reported a fall in profit of 8 percent last year, VN Express is reporting. This is the first time profit has declined since it was established in 2020.
Last year was not a great year for the Vietnam Stock Exchange. Interest in the market as a means of raising capital was lacklustre with just three IPOs completed by the end of November worth just US$7 million. Furthermore, foreign investors exited the market to the tune of over US$1 billion as greater global uncertainty weighed heavily on the local bourse.
This has continued into 2024, with nearly US$2 billion worth of foreign funds pulled from the market year-to-date. However, the VN-Index, the benchmark index for the Ho Chi Minh City Stock Exchange has actually been climbing as local investors expand their local stock portfolios.
That said, there is still a lot of uncertainty around the local economy. Specifically, with pressure mounting on the local currency despite the State Bank burning through its US dollar reserves at a heady clip and issuing treasury bills to try and keep it stable, an interest rate rise is looking increasingly likely in the not too distant future. This could spell trouble for local markets.