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2009 may be good year for stock market: Analysts
In the latest report about Vietnam’s stock market released in January 2009, Thang Long Securities Company’s research and analysis team said that Vietnam’s securities are attractive if considering the low P/E and the low market capitalisation on GDP.
The report said that investors can expect Vietnam’s stock market to perform much better than any other country in the region in 2009. However, the analysts have also reminded investors that they should not expect the ‘golden age’ to return as the booming period is over.
With the current low P/E, investment in Vietnamese stocks will bring more profit than investment in any other market’s. If investors grasp opportunities to purchase stocks at low prices and sell at high prices, Vietnam proves to be one of the markets with the best opportunities in 2009.
In related news, while commenting about Vietnam’s stock market, Jim Hassett, Chairman of Ernst & Young Asia Pacific, said that Vietnam’s stock market experienced an overly hot development period; but Vietnam’s stock market witnessed the deepest decreases among Asian markets in 2008.
He said that in order to create favourable conditions for the recovery of the stock market in 2009 as well as for the long term, the government of Vietnam needs to push up the equitisation process. The IPOs of economic groups and big corporations in the main business fields of Vietnam will catch the attention of foreign investors.
International investors are now restructuring their portfolios and addresses for investment. Investors’ confidence always plays a very important role; therefore, what Vietnam needs to do is to maintain socio-economic stability and avoid the collapse of the stock market, real estate market and the banking system.
When asked to comment about the measures Vietnam is following to overcome the crisis, Mr Hassett said that most regional governments are applying measures on demand stimulus by reducing taxes, and pumping money into national economies through demand stimulus packages.
He said that the government of Vietnam has taken some wise moves recently, including the announced $1bil demand stimulus package.
He said that Vietnam’s stock market still does not have any listed company which has the market capitalisation value of over $1bil whose stakes can be purchased by foreign investors.
There are only five listed companies with the market capitalisation value of over $500mil which still have room for foreign investors. However, the stakes prove to be suitable for small investment funds only.
VietNamNet, TBKTVN
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