Right Time for Bargain Hunting: Stock Experts

Local stock experts have analyzed that it is now right time for investors to bargain-hunt after Vietnam shares have lost 40-50 per cent on average since March of this year, predicting the upcoming bull market.

 

Nguyen Van Thuan, Dean of Accounting - Finance - Banking Department of Ho Chi Minh Open University also said that the falling price will open new opportunities for investors to buy new shares at cheaper price.

 

The sharp decrease in prices of blue-chips has been a shock for investors. Saigon Thuong Tin Commercial Joint Stock Bank (STB) share price fell by 31.7 per cent in two months despite of its good business result with pretax profit of VND610 billion in the first half.

 

The giant stock on the market, FPT, also lost VND161,000 each, or 39.15 per cent in over two months. Other blue-chips such as ACB, SSI, REE and GMD also saw the same decrease.

 

Most investors are in the fear of price dilution partly because some big foreign financial institution such as HSBC or Merry Lynch forecast a dark picture of the Vietnam stock market in the remaining months of this year.

 

Further, State Bank of Vietnam is now continuing to adopt the tightened monetary policy and has recently issued a decree to limit banking loans for stock investment while the market authorities has taken little measures to manage the market.

 

However, the Vietnam’s economic outlook is still bright and GDP growth is set to achieve 8.5 per cent this year, and listed companies have been obtaining good business results. Individual investors are advised to look into the company’s basic financial indicators such as P/E, EPS or ROE to choose the best stocks.

 

So far this year, the Vietnam stock market index has fallen 270.4 points to 900.26 on Aug 16. (Youth online)