Banking & Finance

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.

According to Bloomberg, the performance of Asian capital markets has been high, with some posting double-digit returns, including Vietnam. VnDirect, meanwhile, has said that Vietnam stands out, with low prices and high profit growth potential in the 2021-2023 period compared to regional markets.

As of the end of September, there were 39 companies on the Ho Chi Minh Stock Exchange (HoSE) with a market capitalization in excess of $1 billion; two more than at the end of August.

Most securities companies made differing evaluations compared to actual market performance in September due to the volatility caused by Covid-19, with Yuanta Securities Vietnam making contradictory forecasts. VnDirect, however, still believes that October is a good time to acquire shares.

In order for banks to continue to support businesses, especially those facing difficulties and that are sub-prime, it is necessary to have mechanisms and policies at a higher level to protect banks against potential huge bad debts in the future.

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.