Vietnam's Stock Market Bullish, HSBC
HongKong-Shanghai Banking Corporation (HSBC) forecast that Vietnam’s stock market will see a bullish for three reasons in the long-term, state media reported on October 2.
Vietnam shares rebounded after surpassing 900-point sentiment support level, in the context of the fronting global stock market and foreign investors’ expectation to buy reasonable shares via big IPOs late this year.
VNI rose 14 per cent in the past five weeks and 34 per cent from the start of this year, HSBC said.
Currently, the market has been led by the banking and financial stocks, with Sacombank seeing its shares up 30 per cent on month price up by 30 per cent over and ACB by 26 per cent.
French AXA, HSBC bought a 16 per cent stale in Bao Minh Insurer and a 10 per cent stake in Bao Viet Insurer, respectively in August.
HSBC affirmed it has put Vietnam back into the recommended investment list, with 2 per cent of total capital into Asia-Pacific investment.
The bank is looking forward to IPO of Vietcombank which plans to sell 35 per cent to foreign strategic partners but did not give exact time.
Vietnam is expected to be named in MSCI index of Asia-Pacific stock market in 2008, becoming an attractive target for many international investors if its ten stocks are valued at US$1 billion. (Securities Investment, HSBC’s Press Release)
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