April 26, 2018 18:43

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Vietnam Securities “go backward” compared to the world?

12:43 | 05/04/2018

VCN-  Vietnam Securities have achieved positive results with the VN- Index increasing by nearly 20% compared with the end of 2017, and it is the most significant breakthrough in the world for the same period. 

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Illustrative photo Source: Internet

After the breakthrough, the stock market in the first session of April is increasing more due to investors and the VN- Index is reaching 1,196,61 points.

According to the statistics, April is the period in which the VN-Index has the highest increase in a year. Specifically, from 2008 to current date, there are 7 years when the VN-Index increased in April, and only 3 years where it decreased.

Also, in April, many large enterprises will hold annual shareholder meetings with ambitious business plans that will be announced. This will be the catalyst for the uptrend of shares.

This is the time when business results for the first quarter are announced. Accordingly, information about enterprises’ business operations attracts investors and the stock market often fluctuates in this period.

Besides, in April, large enterprises (TPBank or FPT Retail) will be listed on the Vietnam Stock market. These are enterprises that have good backgrounds and will attract foreign investment funds. In addition, Hai Phat Invest- the largest company engaged in the real estate field will also list on the stock exchange in the second quarter.

Thus, this will attract more capital flows and investors will have more selection as well as bringing new opportunities into the Stock market.

This explains why Vietnam Stock market seems to go backward compared to the world market with the closing session at over 1,196 points on 2nd April. Thereby, the VN-Index hit a new peak in the market. It is clear that the market is completely based on the expectations of investors rather than to past reference points.

Vietcombank Securities Company (VCBS) said that the market development has shown a positive investor sentiment and given a signal of a new short-term uptrend.

The Vietnam- Index hit a new peak, showing that the investors' expectations in the market have been significantly improved thanks to positive macroeconomic information announced by the Government, as well as the determination and direction of operators in improving the business environment and promoting sustainable economic growth.

"However, we also recommend that investors carefully consider the enterprises based on a fundamental analysis of the growth prospects and current valuation of enterprises before making an investment decision or restructure in the list "- VCBS recommended.

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Mr. Tran Hoang Son, Director of market strategy of MBS stated that the leading sector groups might be banks, real estate, construction, building materials, retail and consumer goods and petroleum.

However, Mr. Son said that the world market has potential high risk, especially when stock indexes in big markets such as the US, Japan, Europe, Southeast Asia are reducing. The decline of FANG stock and the significant increase of LIBOR has shown the increasing risk due to the credit boom over the past 9 years. Thereby, caution is necessary and a prevention strategy is required if the world stock market has sudden unexpected drops.

By Huong Giang/Ngoc Loan