The VN-Index of the Hochiminh Stock Exchange is expected to beat a new record of 1,300 points at the end of this year as Vietnamese shares are attractive to investors due to affordable prices, said Nguyen Thanh Lam, head of analysis department at Maybank Kim Eng Securities Company.
Speaking at a seminar discussing the stock market outlook in the second half of 2018 last Friday, Lam said Vietnamese shares are cheaper than regional products by 25% to 30%.
Investors should be careful as there will be clear differentiation among listed enterprises. All players should prepare for three scenarios of the main index, including that at 820 points, 1,100 points and 1,300 points, Lam was cited by Dau tu Chung khoan website as saying.
For the neutral scenario, if the trade war between the U.S. and China cools down and regional stock markets move sideways, the VN-Index is predicted to stand at around 1,100 points. However, investors should be cautious in selecting profitable firms during the second half of this year.
Regarding the negative scenario, the U.S. will impose tariffs of 25% on US$200 billion worth of Chinese goods in September, causing huge impact on stock markets in the region. The VN-Index is seen sliding to 820 points.
Last, for the best vision in which the two nations can reach a compromise, the main index will be able to reach 1,300 points, as Vietnamese shares will attract huge foreign cash flow thanks to low prices, the expert said.
According to Maybank Kim Eng Securities Company, most stock markets have seen impacts from the trade war. In July, the VN-Index saw the biggest point drop among benchmarks of regional markets such as Malaysia, Indonesia, the Philippines and Thailand.
The local market made some recovery in the past three weeks.
The VN-Index traded in positive territory for the entire session last Friday and was poised for a strong gain after rising as much as 1.2% in the afternoon. However, a late pullback left the main index up 0.48% at its lowest level of the day at the close.
Trading value on Hochiminh Stock Exchange was tepid at VND3.5 trillion, well below the daily average of the last year of VND4.7 trillion. For the week, the market eked out a gain of 0.1% for a third straight week of gains.
Lender VCB was the top contributor to the day’s gain, followed by fellow financial stocks BID and BVH. However, overall, financials were mixed as VPB, MBB and CTG led laggards.
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