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Market comment – June 18
Stocks rise on tax exemption hopes
The National Assembly meeting is coming to an end with a strong possibility that lawmakers will approve a tax exemption for capital gains from equity trading, hence the fresh bout of optimism among investors.
They are also more confident after a number of companies reported profits in the first five months, which has spurred expectations that corporate earnings will be good for the first half.
To add to the good news, investors are becoming less worried about predictions of a return of inflation now that the government has restated its determination to keep inflation under control.
The stock market may continue its rally for a while yet. Indeed, the VN-
Index could well reach 550 by early July, when many listed companies start releasing their first-half sales figures.
Vo Huu Tuan, head of Bao Viet Securities’ Ho Chi Minh City branch
thanhnien, Bloomberg
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