Market comment – Aug. 17

VN-Index to rise in short term

With investors’ optimistic outlook and large capital inflows from the banking system into the stock market, the index will advance in the short term. Not all stocks will rise as investors are investing in shares with strong fundamentals and earning estimates, such as property, food and finance.

However, I expect the market to decline slightly this week as foreign investors have been selling more than buying since the end of last week. Vietnamese stock prices are getting expensive.

For the longer term, I expect the central bank to announce some measures soon to limit lending for stock investment after seeing the imbalance between the banking system’s liquidity and the stock market’s surge. That will cause a correction. The VN-Index will be very volatile and I don’t think it will pass the 550 level by the end of the year.

Nguyen Minh Tuan,

Head of Research at SaigonBank Berjaya Securities Joint Stock Co.

thanhnien

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