Finance & Banking
Last updated: Thursday, March 23, 2017
Stock Market in 2017: Appealing to InvestorsPosted: Tuesday, January 17, 2017
The Vietnamese stock market experienced a volatile year, but still ended the year 2016 successfully with the VN-Index, the main gauge of the market, climbing 15 per cent. In 2017, the stock market will have robust changes and bring numerous opportunities to investors, according to economic specialists and industry insiders.
Dr Tran Du Lich said, in 2017, the stock market will undergo the same fluctuant scenario as in 2006 or in the 2008 - 2009 period. The market was forecast to pave the way for development in subsequent years.
2016 - A volatile year
In 2016, the Vietnam stock market was deemed successful when the VN-Index rose nearly 15 per cent. The market was largely affected by major domestic and international events. Specifically, a series of big companies floated their shares on the local bourses such as ACV, Sabeco, Habeco and Vissan. Other influencing events included Brexit (referendum on the United Kingdom membership of the European Union), Formosa, Ca Na Steel, Donald Trump’s victory in US presidential election and the largest-ever foreign investment outflow of nearly US$400 million. All these negative developments could not prevent the Vietnam stock market from growing. The VN-Index ranged from 579.03 points to 670 points.
According to Dr Le Anh Tuan, Deputy General Director of Investment - Economics at Dragon Capital, the sharp rise of the US dollar in the short term has affected emerging markets such as Vietnam, but these markets will be better in the medium and long terms when the US economy improves.
Dr Tran Du Lich said, in the context of global economic uncertainties, Vietnam's stock market performed stably and the Government always kept a close watch on the market and minimised market risks. At present, the performance of the stock market is greatly dependent on the financial market and is affected by the real estate market. In addition, if economic structure issues, bad debt settlement and bad debt market opening are addressed, the stock market will thrive.
However, Dr Nguyen Tri Hieu, an economic expert, warned that although the stock market will continue to grow next year, securities investment will be still a playground for professionals, not novices. He added that, five investment channels on the financial market - gold, securities, foreign exchange, real estate and bank deposit - will be more volatile next year.
2017: Huge opportunities for investors
According to a recent report by the World Bank (WB), Vietnam's GDP was estimated to expand 6 per cent in 2016 and 6.3 per cent in 2017. These impressive figures reassert Vietnam’s appeal to foreign financial institutions and investors.
Mr Kim Thien Quang, CEO of Maybank Kim Eng, said share listings of many big corporations in 2017 will give a new face to the Vietnamese stock market. Specifically, Sabeco and Habeco have officially floated their shares on local bourses eight years after going public (in 2008). These new elements stimulate the growth of Vietnam's stock market, as Sabeco (HOSE: SAB) was traded at upper limit prices for many straight days after floating.
According to a survey by Maybank Kim Eng, in 2016, the rates of returns of gold, US dollar, securities, real estate and bank deposits rose 9.7 per cent, 1 per cent, 13.4 per cent, 5.5 per cent and 6.5 per cent, respectively.
Ms Nguyen Thi Viet Ha, Member of the Board of Directors of the Hochiminh Stock Exchange (HOSE), said that opportunities are huge for investors in 2017. Thus, they need to catch them just in time.
Mr Nguyen Duc Hung Linh, Director of Analysis and Investment Consultancy for Individual Customers at Saigon Securities Inc. (SSI), noted that many State-owned companies launched initial public offerings (IPOs), including 12 giant firms with a combined registered capital of VND260 trillion, which are preparing for listing. In addition, many big private enterprises as Vietjet Air and Novaland prepared for listing with a total market capitalisation of VND100 trillion. Therefore, the market will be quite exciting in 2017.
Thus, in 2017, the stock market will be a playground for large-cap stocks. According to specialists, stock investors need certain knowledge to be successful.