Vietnam Stock Market to Rally This Month: Analysts
Vietnam’s stock market will likely rally this month as the State Securities Commission (SSC) will take six measures to support the market while listed firms will hold shareholder’s meetings, analysts at Viet Dragon Securities Co. predicted in its recent report.
The list of solutions was released by the market regulator recently and several shareholders’ meetings are scheduled this month.
Viet Dragon also said heavy buying recently by domestic investors was another good sign as stocks have fallen to attractive prices despite foreign investors’ selling.
VinaCapital, one of leading equity funds in Vietnam, also said in its February report that the prices of Vietnamese shares have been stabilized after hedge funds finished their fiscal year to return capital. The P/E ratio of local shares is currently 9.4 and P/B 1.3, VinaCapital said.
The Vietnamese government’s policy to speed up the privatization of state-run enterprises this year will bring in a lot of attractive opportunities for investors in long term, the fund said. Currently, VinaCapital’s VOF Fund, dedicated to listed and OTC stocks, has balance of US$45 million in cash.
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