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Market comment - July 22
Vietnam stock outlook remains ‘positive’
The local stock market’s performance has been a little bit boring in the last couple of weeks, but I don’t think it’s difficult to understand.
The market rally was really hot over the past two months and it’s necessary to have some corrections.
Besides, when the index rebounded dramatically, the government was afraid that the rally was too hot, and issued some cautious measures to manage loans for equity investment. And that discouraged people in the market at some points.
We can see that liquidity in the market has declined and it is at a low level now, especially compared with early June.
Though the financial situations in the domestic market and international markets are relatively positive, local investors are still very cautious in trading.
One thing I have noticed recently is that the local market has performed in a different direction to the global market. This signals that domestic investors are waiting for some action from the government. The market is really waiting for some support.
However, the general outlook for the market in the second half is still positive. Earnings of listed companies are forecast to be better than last year and the economy is still expected to continue to recover.
Huy Nam,
An independent Ho Chi Minh City-based equity analyst and consultant on share sales
thanhnien, bloomberg
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