(Bloomberg) -- Vietnam's benchmark stock gauge rose to a record high after breaking above a key technical level seen as a bullish sign as optimism grew over an economic recovery.
The VN Index jumped 2.1% to 1,216.10 at the close, climbing above the 1,200 level seen by MB Securities JSC. as a key threshold. The measure has rallied more than 10% this year. Vingroup JSC, the country's biggest company by market value, climbed for a seventh day, gaining 4.3%. That's the stock's longest stretch of advances since late October.
The break of this “important technical threshold” is the “most difficult resistance level ever” and will make investors grow more confident in the rally, said Tran Hoang Son, head of market strategy at MB Securities. Sentiment “is good” thanks to positive news such as a recovery in the economy in the first quarter and the government's control over the pandemic, he said.
Vietnam Stocks Are on the Doorstep of a Fresh Record High: Chart
Gross domestic product can still notch the 6.5% growth the government targets this year after growing 4.48% in the first quarter, according to Le Trung Hieu, head of the General Statistics Office's GDP department. He pointed to signs showing the recovery is continuing, including gains in exports and foreign direct investment.
The recovery in Vietnamese stocks has been supported by investments from local funds, as foreigners have been net sellers so far this year, having sold $809 million of shares, according to data compiled by Bloomberg.
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