Chủ đề: stock

In its newly-released stock market outlook, KBSV forecasts that five industries will benefit the most from the recovery in Vietnam’s economy, which will be a positive for their stock prices over the remainder of 2022. The groups are retail; travel; banking; industrial park real estate; and production and export.

With a solid foundation of 2021, the stock market is forecasted to develop strongly, increasing in-depth in the new year.

With a solid foundation from 2021, Vietnam’s stock market is forecast to develop strongly and increase in-depth this year.

Vietnam’s stock market is attracting cash flow and will maintain an upwards trend in the medium-long term, which will create a favorable environment for State-owned divestments to take place more smoothly in 2022. Agriseco Securities has predicted that investment opportunities in 2022 will mainly focus on infrastructure groups and the banking industry, with the main driver being from initial public offerings (IPOs) and divestments.

Listed companies in a position to post handsome profits next year, analysts believe.

Many records set since the establishment of the State Securities Commission of Vietnam on November 28, 1996.

A resurgence in banking stocks over recent days helped the VN-Index climb to a new record in hitting 1,500 points. This shows that bad debts rising but kept under control has not affected banking stocks to any great extent and the expansion of credit would take them even higher.

The value of corporate bond issuances by consumer goods enterprises in October stood at VND7.284 trillion ($320.48 million), accounting for 21 per cent of the total value and putting it in second place, surpassing the banking group but behind the real estate group.

Despite predicted increases, many companies posting positive business results and profits have seen their stock price fall, with banking, securities, and steel stocks being examples. Conversely, the stock price of some companies with declining profits or losses and a gloomy outlook have increased significantly.

The share held by stock companies in the brokerage market is no indicator of profit, with some of those possessing a large market share posting small profits and vice-versa. Profit margins are also quite different.

Forty-two corporate bond issuances were conducted in September, mobilizing VND29.734 trillion ($1.3 billion). The real estate group attracted VND8.394 trillion ($369.56 million) in private placements with high interest rates. Experts, however, have warned that this may be the beginning of a “Vietnamese Evergrande”.

Continuing high number of new accounts during social distancing due to electronic opening procedures for domestic investors.

The growth outlook for the stock market in the third quarter may remain gloomy but earnings per share (EPS) seem likely to increase around 33 per cent this year. The market is therefore priced at a reasonable yet unattractive level.

Net sales by foreign investors on Vietnam’s stock exchange were 17 times higher in the first nine months of 2021 than in the same period last year; a new record. Experts expect capital flows from foreign investors to fully return in mid-2022.

Stock prices remain quite cheap given anticipated 2021 profits and potential profits in 2022. If businesses can maintain growth of 27 per cent in 2022, stocks will be trading at 13.2-times 2022 profit.

Foreign investors net sold VND32.064 trillion ($1.41 billion) on Vietnam’s stock exchange in the first eight months of 2021, double the figure in 2020 as a whole, which was a record VND15.7 trillion ($689.26 million). Experts expect that the stock market will become more attractive to foreign investors in the time to come thanks to barriers being actively removed.

The US remained Vietnam’s largest export market in the first eight months of 2021, and direct and indirect investment capital from the US into Vietnam increased sharply in the period. BIDV Securities believes that the steel industry will be the leading beneficiary of growing Vietnam - US trade ties, followed by the textile and garment industry, seaports, fisheries, real estate, and industrial park real estate.

After a long period of silence on the stock market, seafood stocks broke out in June and July on the back of profits and future export potential. The Viet Dragon Stock Company (VDSC), however, believes that seafood companies will start to see a sharp fall in exports from August onwards. This may continue into the fourth quarter as Covid-19 infections continue.

Experts have predicted that cash flows won’t go into every stock in Vietnam during the second half of 2021, adding that only stocks that are able to maintain growth in the context of the pandemic and when the economy recovers will benefit. Other experts are concerned that stock prices are too high. But “high” or “low” remains subjective and depends on profit growth expectations. There are many investors who buy or sell based simply on emotions.

The International Finance Corporation (IFC) has completed the acquisition of 6.29 per cent of HDI Global’s holding in the PVI Joint Stock Company, with the ambition of making it a leading insurance company in Southeast Asia. The two strategic partners now hold more than 51 per cent of PVI’s charter capital and over 54 per cent of voting rights.