Illustrative image (Source: VNA) Hanoi (VNA) – Vietnam’s benchmark stock index, VN-Index, could exceed 1,300points in 2018 due to the positive outlook for the country’s economic growthand a strong inflow of foreign investment.
The benchmark index on the HCM Stock Exchange ended 2017 at 984.24 points,setting a new 10-year high after having rallied a total of 4 percent in sixsessions. The benchmark index has risen 48 percent since the end of 2016.
The benchmark VN-Index was also among the top three stock indices with the bestgrowth rates worldwide, along with Argentina and Mongolia’s markets.
The minor HNX Index on the Hanoi Stock Exchange also finished last year on apositive note at 116.86 points. The northern market index made up afive-straight-day increase of 3.4 percent and totaled annual growth of nearly46 percent.
Vietnam’s stock market has doubled in size in the past year to reach 3.52quadrillion VND (155 billion USD), equal to 72 percent of the country’s totalgross domestic product (GDP).
The strong development of the Vietnamese market was fueled by the sale andlisting of large-cap enterprises---including brewers Sabeco and Habeco, petroldealer Petrolimex, dairy producer Vinamilk and retail giant Vincom Retail---andby a net purchase value of 27 trillion VND (1.2 billion USD) recorded byforeign investors for the whole year.
The country also gained some achievements in its macro-economic conditions,such as the higher-than-expected GDP growth rate of 6.81 percent published bythe General Statistics Office on December 27, some 120,000 new businessesformed in 2017 and the reduction of administrative procedures by ministries andsectors.
Analysts expect all of these factors to provide a further boost to both thecountry’s economy and stock market in 2018, with strong growth expected inbanks and energy firms.
“The VN Index in 2018 could outstrip the 2007 record high of 1,180 points, madewith strong market trading liquidity,” said Nguyen The Minh, deputy head ofcapital market analysis and individual investors at Saigon Securities Inc(SSI). “The VN Index can rise up to 1,340 points this year.”
In 2018, the stock market will receive a strong boost from many companies thatsell shares in initial public offerings (IPOs) and from commercial banks thatare beginning to list shares on the stock exchanges, Minh said.
The HCM City Development Bank (HDBank) will become the first commercial bank togo public in 2018, listing 981 million shares on the HCM Stock Exchange underthe code HDB on January 5.
Bac A Joint Stock Commercial Bank (Bac A Bank) was the latest commercial bankto go public last year. The Hanoi-based bank started trading 500 million shareson the Unlisted Public Company Market (UPCoM) on December 28.
Bac A Bank was the fifth commercial bank to trade shares on the stock marketafter VPBank, Kien Long Bank, Lienvietpost Bank and Vietnam International Bank.The total number of traded banks has reached 14.
According to Minh, banks are expected to post high profits for 2017, and theirperformance will be kept steady in 2018 thanks to the restructuring ofnon-performing loans and the improvement of the banking structure to meet thestandards of Basel II.
The energy sector is also expected to boost the market as it has underperformedin the last two years as a result of low oil prices. Duong Van Chung, head ofthe northern market division at MB Securities Company (MBSC), toldtinnhanhchungkhoan.vn that energy shares will see strong growth and drive themarket up.
Chung said energy firms had barely advanced in 2017 when crude prices reachedthe expected breakeven price point of 60 USD per barrel in December 2017, setby those energy firms.
US crude West Texas Intermediate finished 2017 at 60.42 USD per barrel, havingrecovered from its 13-year-low range of 33.62 USD per barrel in late January2016. Brent crude ended last year at 66.87 USD per barrel, up from the lowlevel of 34.74 USD per barrel in late January 2016.
Oil prices are expected to advance further this year on the extension of an outputcurb deal between the Organisation of Petroleum Exporting Countries (OPEC) andnon-OPEC exporters.
Meanwhile, IPOs and share sales of large-cap energy companies will also attractinvestors, Chung said. These large-scale deals include the IPOs of energyfirms, such as PetroVietnam Power Corp (PV Power), PetroVietnam Oil Corporation(PV Oil) and Binh Son Refinery and Chemicals Corporation (BSR) and the sharesales of Petrolimex and PetroVietnam Gas Corporation (PV Gas).
In addition, brokerage firms also hope to have a robust year in 2018 with thegrowth of the securities market and the introduction of new securities productsto meet investors’ demand and international practices, analysts said.
According to SSI analyst Minh, the strong improvement of the Vietnamese marketwill attract more attention from foreign investors.
The over-one-billion USD foreign investment that flew into Vietnamesesecurities market in 2017 will increase this year, and foreign capital will bethe main source driving the growth of the market, Minh said.
Foreign investors are expected to participate in the IPOs and share sales ofthe large State-owned enterprises, while the efforts of the Government toimprove the business environment and increase the limit of foreign ownership inlocal companies is also expected to motivate foreign investors to strengthentheir presence in the local stock market, Minh said.-VNA
The benchmark index on the HCM Stock Exchange ended 2017 at 984.24 points,setting a new 10-year high after having rallied a total of 4 percent in sixsessions. The benchmark index has risen 48 percent since the end of 2016.
The benchmark VN-Index was also among the top three stock indices with the bestgrowth rates worldwide, along with Argentina and Mongolia’s markets.
The minor HNX Index on the Hanoi Stock Exchange also finished last year on apositive note at 116.86 points. The northern market index made up afive-straight-day increase of 3.4 percent and totaled annual growth of nearly46 percent.
Vietnam’s stock market has doubled in size in the past year to reach 3.52quadrillion VND (155 billion USD), equal to 72 percent of the country’s totalgross domestic product (GDP).
The strong development of the Vietnamese market was fueled by the sale andlisting of large-cap enterprises---including brewers Sabeco and Habeco, petroldealer Petrolimex, dairy producer Vinamilk and retail giant Vincom Retail---andby a net purchase value of 27 trillion VND (1.2 billion USD) recorded byforeign investors for the whole year.
The country also gained some achievements in its macro-economic conditions,such as the higher-than-expected GDP growth rate of 6.81 percent published bythe General Statistics Office on December 27, some 120,000 new businessesformed in 2017 and the reduction of administrative procedures by ministries andsectors.
Analysts expect all of these factors to provide a further boost to both thecountry’s economy and stock market in 2018, with strong growth expected inbanks and energy firms.
“The VN Index in 2018 could outstrip the 2007 record high of 1,180 points, madewith strong market trading liquidity,” said Nguyen The Minh, deputy head ofcapital market analysis and individual investors at Saigon Securities Inc(SSI). “The VN Index can rise up to 1,340 points this year.”
In 2018, the stock market will receive a strong boost from many companies thatsell shares in initial public offerings (IPOs) and from commercial banks thatare beginning to list shares on the stock exchanges, Minh said.
The HCM City Development Bank (HDBank) will become the first commercial bank togo public in 2018, listing 981 million shares on the HCM Stock Exchange underthe code HDB on January 5.
Bac A Joint Stock Commercial Bank (Bac A Bank) was the latest commercial bankto go public last year. The Hanoi-based bank started trading 500 million shareson the Unlisted Public Company Market (UPCoM) on December 28.
Bac A Bank was the fifth commercial bank to trade shares on the stock marketafter VPBank, Kien Long Bank, Lienvietpost Bank and Vietnam International Bank.The total number of traded banks has reached 14.
According to Minh, banks are expected to post high profits for 2017, and theirperformance will be kept steady in 2018 thanks to the restructuring ofnon-performing loans and the improvement of the banking structure to meet thestandards of Basel II.
The energy sector is also expected to boost the market as it has underperformedin the last two years as a result of low oil prices. Duong Van Chung, head ofthe northern market division at MB Securities Company (MBSC), toldtinnhanhchungkhoan.vn that energy shares will see strong growth and drive themarket up.
Chung said energy firms had barely advanced in 2017 when crude prices reachedthe expected breakeven price point of 60 USD per barrel in December 2017, setby those energy firms.
US crude West Texas Intermediate finished 2017 at 60.42 USD per barrel, havingrecovered from its 13-year-low range of 33.62 USD per barrel in late January2016. Brent crude ended last year at 66.87 USD per barrel, up from the lowlevel of 34.74 USD per barrel in late January 2016.
Oil prices are expected to advance further this year on the extension of an outputcurb deal between the Organisation of Petroleum Exporting Countries (OPEC) andnon-OPEC exporters.
Meanwhile, IPOs and share sales of large-cap energy companies will also attractinvestors, Chung said. These large-scale deals include the IPOs of energyfirms, such as PetroVietnam Power Corp (PV Power), PetroVietnam Oil Corporation(PV Oil) and Binh Son Refinery and Chemicals Corporation (BSR) and the sharesales of Petrolimex and PetroVietnam Gas Corporation (PV Gas).
In addition, brokerage firms also hope to have a robust year in 2018 with thegrowth of the securities market and the introduction of new securities productsto meet investors’ demand and international practices, analysts said.
According to SSI analyst Minh, the strong improvement of the Vietnamese marketwill attract more attention from foreign investors.
The over-one-billion USD foreign investment that flew into Vietnamesesecurities market in 2017 will increase this year, and foreign capital will bethe main source driving the growth of the market, Minh said.
Foreign investors are expected to participate in the IPOs and share sales ofthe large State-owned enterprises, while the efforts of the Government toimprove the business environment and increase the limit of foreign ownership inlocal companies is also expected to motivate foreign investors to strengthentheir presence in the local stock market, Minh said.-VNA
VNA
