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Stocks may rise 29 pct on economic outlook: Brokerage
The VN-Index may gain 29 percent in the third quarter as economic growth accelerates, Saigon Securities Inc., the country’s biggest listed brokerage, has said.
The index is forecast to advance to 357 points as the nation halts the economic slowdown and companies cut costs and increase profits, the brokerage said in an e-mailed report Thursday.
The measure, which dropped 66 percent in 2008, was the worst-performing benchmark index in Asia. The government has been trying to bolster exports and stimulate domestic demand to keep growth from stalling, including six interest rate cuts since October.
“The worst of the market may be over,” Nguyen Duc Hung Linh, director of SSI’s research and advisory department, said.
“There is a high chance that the economy will see light at the end of the tunnel, and stocks may peak at that level by the third quarter.”
Asia Commercial Bank, Vietnam’s biggest publicly traded lender, is Linh’s top pick because of its wide range of services.
Other recommendations include so-called necessity product makers like Vietnam Dairy Products Joint-Stock Co., the biggest milk producer, Vinh Son-Song Hinh Hydropower Joint-Stock Co., and Cuu Long Pharmaceutical Joint-Stock Co.
Bloomberg
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