Nation's stock market cools after record highs

The VN Index suffered decreases on the two final trading days this week, 31 points on Dec. 21 and another 34.73 points on Dec. 22, closing the week at 744.15, after reaching a six-year record high of 809.66.

"The index jumped from 633.05 at the end of November to the record high of over 809 on Dec. 20, which shows a hot market," said the centre's director Tran Dac Sinh.

"I'm afraid that a set-back like the one in April will occur again. The average P/E (price/earnings ratio) of listed companies is around 38 compared to 10 to 17 of other markets," said Sinh.

"That ratio means share prices are now too high over their fundamental value so the market may adjust at any time."

He said the positive performance of listed companies, the country's WTO membership and the approved PNTR by the US Congress and increased financial investment, were among the factors that pushed up the price.

The first IT blue-chip FPT made its debut on December 13 at 400,000 VND and rose every trading day to 510,000 VND on Dec. 20 and then declined to 461,000 VND on Dec. 22.

Sixty five companies suffered losses, three remained unchanged and seven enjoyed increases on Dec. 22.