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Stock market to grow further
Viet Nam’s stock market will continue to grow, with the VN-Index likely to reach the 1,200 mark between now and the end of this year, a securities expert said.
Two months after the Vietnamese securities market’s major index bottomed out at 883.9 points, it clawed its way back to 1,000 points in late September and climbed to 1,104.61 points by the end of the October 12 trading session.
“The market will experience continuous fluctuations, going up and then going down slightly. However, the level of increase in the last trading session will always be higher than that in the previous session,” said Nguyen Trung Kien from the Viet Quoc Securities Company.
Kien also said recent good news will be catalysts for VN-Index to reach 1,200 points or more in the remaining months of this year.
One bright spot for investors are the initial public offerings (IPOs) of big businesses, including the Bank for Foreign Trade of Viet Nam (Vietcombank), said To Kim Ngoc, Deputy Director of the Institute of Banking.
Recent forecasts on the Vietnamese market released by some international organisations and banks will also be an impetus for market growth.
The Hong Kong and Shanghai Banking Corporation (HSBC) predicted that a relatively large amount of foreign investment would be poured into companies listed on the Vietnamese stock market till the end of the 2007 fiscal year.
Ngoc also cited the increasing flow of foreign investment into Viet Nam as another factor that helps bolster the market.
The Ministry of Planning and Investment has recently adjusted its forecast on foreign direct investment in Viet Nam in 2007, saying that the country is expected to attract 13 billion USD this year rather than 12 billion USD as initially forecast.
VNA
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