Vietnamese shares rose on Tuesday as risk appetite improved amid the authorities' efforts to curb inflation, promoting economic growth.

The number of newly-opened securities accounts dropped sharply in July to the lowest in about two years as stock market liquidity hit a monthly low.

Vietnamese shares opened higher on Monday, led by banking and large-cap stocks which were bolstered by continued improvements in investors’ sentiment.

The central bank’s flexible management of monetary policy and the return of capital into markets around the world would have positive impacts on Vietnam’s market.

 After hitting a bottom of around 1,140 points in early July, the stock market had recovered for four straight sessions, with the benchmark VN-Index surpassing the threshold of 1,250 points.

“Viet Nam’s economy is even stronger than we had expected at the beginning of the year, but that strength is not reflected by higher stock prices due to the [US’s] aggressive rate hikes and the recent regulatory crackdown in Viet Nam,” Michael Kokalari, chief economist at VinaCapital, has said in a report.

 Shares ended the week on a negative note, putting a break on a four-day rally streak, as investors became timid when the VN-Index approached the resistance zone.

The second quarter business results show that the market has been deluged while the VN Index is showing no signs of improving since early July, with figures indicating that the Price-To-Earnings (P/E) ratio is going even lower.