WB Says Vietnam Shares PE Not Too High
The price over earning per share (P/E) ratio of Vietnam shares is not too high because the country has a fast economic growth, the World Bank said in its updated report on Vietnam’s economic development.
The total market capitalization of two stock exchanges in Vietnam reached US$29 billion to date, accounting for more than 40 per cent of the country’s GDP estimated for this year, still behind India and China, whose market value surpassed 100 per cent of their GDP.
However, the bank said the market capitalization increased sharply because of a series of shares issuances by large companies in October and November, not of share price hikes.
World Bank revealed that foreign investors are holding nearly one fourth of market value in the Ho Chi Minh City Stock Exchange (HOSE), or nearly US$5.3 billion. (Thanh Nien)
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