Vietnam Shares Unlikely to See Deep Correction: SSI Chairman
Vietnam’s shares are unlikely to retreat deeply if no major changes are seen in the government’s policies, Nguyen Duy Hung, chairman of Saigon Securities Company (SSI), said at “stock market –opportunities and challenges” seminar recently.
Hung warned of possible risks from high financial leverages and payment balance, however.
SSI analysts said that given an increase of 113% in the past 6 months, most of positive news has been reflected in prices, recommending lowering financial leverages and more caution.
Vietnam trailing PE is at 14.9, lower than 18.4 in Asian emerging markets but higher than 13.8 on average in Thailand, Indonesia and the Philippines, SSI analysts said.
They see positive earnings for Vietnam corporate in the third quarter; however, the general outlook has not improved much as part of their net profits comes from one-off provision return.
SSI analysts see improving exports, FDI flows and the government’s growth quality-focused policies as moving factors for the future uptrend.
Meanwhile, they consider slower global economic recovery, high unemployment rates in developed countries and rising inflationary pressures in Vietnam as challenges.
Though liquidity is much better the market could advance sustainably, led by firms which focus on core businesses, which are far from height in 2007, said Hung. (Cafef)
Vietnamese
