Vietnam's stock market is expected to grow further towards the end of2014, with the VN-Index possibly hitting 650 points, experts said at ameeting held in Hanoi on August 20.
In the first half of thisyear, the index increased 14.6 percent while the HNX-Index rose 14.9percent. "They will continue to be boosted by positive support from theeconomy," said Yun Hang Jin, Korea Investment&Securities Company'sSenior Emerging Market Analyst.
In the last three years, the Vietnamese stock market had developed better than other markets, Yun added.
"Financialpolicies will continue to be effective in the second half of the yearwith a faster pace of execution," Yun said. According to the Republic ofKorea’s investor, money supply will be reinforced to enable the countryto hit its credit growth target.
He noted that the anticipatedrestructuring of the Vietnam Asset Management Company did not pushthrough in the first half and must take place in the second half. As aresult of this, non-performing loans will be reduced during theremainder of the year.
"In the near future, as the Trans-PacificPartnership agreement is reached, investors to the Vietnamese marketwill increase, contributing significantly to the economy," Yun said,adding that foreign direct investment has been flowing into Vietnam andthe stock market was still benefiting from it.
Worries about UStapering and foreign investors' exit are not expected to adverselyaffect buying trends in the second half of the year. Meanwhile, thescheduled widening of the field for foreign ownership, coupled with theinitial public offerings (IPOs) of large state corporations, are seen assupportive factors, with the scale of IPOs in the second half expectedto double that of the first half.
"There is little chance thatforeign investors will offload in the second half," Yun said. However,their buying power will be limited if ownership limits are not lifted.
Historyhas shown that the VN-Index often declined one to three months beforelarge IPOs and would bounce back as the IPOs ended, according to Le DinhMinh Phuong, KIS Vietnam Corporation Head of Analysis.
Phuongalso suggested some sectors that might generate profits for investors,including pharmacy, steel production, information technology and oil andgas.-VNA
In the first half of thisyear, the index increased 14.6 percent while the HNX-Index rose 14.9percent. "They will continue to be boosted by positive support from theeconomy," said Yun Hang Jin, Korea Investment&Securities Company'sSenior Emerging Market Analyst.
In the last three years, the Vietnamese stock market had developed better than other markets, Yun added.
"Financialpolicies will continue to be effective in the second half of the yearwith a faster pace of execution," Yun said. According to the Republic ofKorea’s investor, money supply will be reinforced to enable the countryto hit its credit growth target.
He noted that the anticipatedrestructuring of the Vietnam Asset Management Company did not pushthrough in the first half and must take place in the second half. As aresult of this, non-performing loans will be reduced during theremainder of the year.
"In the near future, as the Trans-PacificPartnership agreement is reached, investors to the Vietnamese marketwill increase, contributing significantly to the economy," Yun said,adding that foreign direct investment has been flowing into Vietnam andthe stock market was still benefiting from it.
Worries about UStapering and foreign investors' exit are not expected to adverselyaffect buying trends in the second half of the year. Meanwhile, thescheduled widening of the field for foreign ownership, coupled with theinitial public offerings (IPOs) of large state corporations, are seen assupportive factors, with the scale of IPOs in the second half expectedto double that of the first half.
"There is little chance thatforeign investors will offload in the second half," Yun said. However,their buying power will be limited if ownership limits are not lifted.
Historyhas shown that the VN-Index often declined one to three months beforelarge IPOs and would bounce back as the IPOs ended, according to Le DinhMinh Phuong, KIS Vietnam Corporation Head of Analysis.
Phuongalso suggested some sectors that might generate profits for investors,including pharmacy, steel production, information technology and oil andgas.-VNA
