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Market comment
The market comments made by some securities company are as follows:
Recently released statistics show that the economy is recovering. Foreign direct investment plummeted but domestic investment, spurred by the government’s stimulus package, increased sharply.
Retail sales of goods and services grew 21.5 percent in the first four months of this year, according to the General Statistics Office in Hanoi.
Some listed firms posted healthy earnings in the first four months of the year, therefore, we expect the market to remain on an upward trend.
Statistical analysis also shows that the VN-Index will fluctuate between 390 and 440 this week.
(Vietnam International Securities Co.)
The VN-Index rose sharply by more than 75 percent from the 235.5 mark at the end of February, becoming one of the best gainers worldwide. Investor confidence is pretty high, cash flows into the market are getting bigger and share prices of large caps have increased sharply.
We estimate the average price-on-earning rate of the market was well above 18, which is fairly high.
The market’s recent rallies were boosted mainly by domestic investors as foreigners and officials of listed companies sold off shares heavily.
Foreign investors were net sellers last week, dumping shares worth VND415 billion.
Many experts expect the VN-Index will rise to 450 soon, but we think the index will not reach that mark as there is no update on corporate earnings that can boost the market.
We recommend investors exercise caution before buying any stocks and/or selling shares to take profits from the recent rises.
Aquatic products, plastic, rubber, construction materials and property stocks will be top picks in the upcoming time.
(Au Viet Securities Co.)
Capital has been flowing into the stock market. The sentiment of speculators has kept pushing the market to new highs. Most investors believe that the global financial crisis had bottomed out, and expects higher second quarter earnings.
The market trend is still very favorable and it will definitely help the index touch new high levels in the short- and long-term scenarios.
However, at present, the market is overheated, mostly because of speculators and the herd mentality, and I think a correction of 5 to 10 percent is necessary to balance market trends in the long-term.
(Phung Trung Kien of VPBank Securities Inc.)
thanhnien
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