Vietnam shares are predicted to see the bull market by the end of 2007 on good operation results of listed companies in Q3 and Q4, rising inflows of foreign investments thanks to political and macroeconomic stability, securities experts and state officials analyzed.
Citigroup and Hong Kong Shanghai Banking Corporation (HSBC) recently released reports on bright economic prospects of Vietnam, stressing it is right time for players to bargain hunt after the stock market dropped 24 per cent from March of this year, state media reported.
“At the 900-point benchmark, prices of shares are not cheap but reasonable for bargain hunting based on great economic growth prospects in the long-term,” HSBC’s report noted.
Vu Bang, Chairman of State Securities Commission in the early Aug interview with mass media expressed his optimism about Vietnam’s stock market and emphasized that there will be many chances for foreign investors to invest in.
“In the medium- and long-term, Vietnam’s stock market will continue booming, and we see great interest by foreign investors, particularly big names such as Goldman Sachs, Merrill Lynch, ” Bang reaffirmed.
Market-boosting news come from good results in the third and forth quarter of this year, and the strong support benchmark of 900 points, the macroeconomic and political stability being maintained by the government of Vietnam, Huy Nam, a stock, economics and financial expert noted.
“Despite deep corrections, Vietnam’s stock market will not likely witness any runaway by investors like in 2006,” Nam said, reassuring that trading accounts being opened by investors tend to grow weekly at securities brokers.
Hoang Xuan Quyen, Head of Tan Viet Securities Co’s Research Center pointed out that the market’s downtrend in the recent time stemmed from price dilution by oversupply of shares by listed companies, which hurt investors’ confidence.
The year’s biggest initial public offering (IPO) by Vietcombank is to be delayed, Quyen said, adding investment institutions will face greater pressure to disburse in the remaining months.
Martin Graham, Director of LSE was recently cited by state media as saying that he saw great development potential of Vietnam’s stock market with daily market capitalization of US$20 million.
There will be a wave of Vietnamese listed companies to float their shares on London Stock Exchange after the two sides signed an agreement on technical assistance and human resource training. (Vneconomy, VNA)
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