Topic: Stocks

According to Mr. Petri Deryng, Founder of Finland’s PYN Fund Management Ltd and Portfolio Manager of the PYN Elite Fund, Vietnam’s stock market, which is the worst in Southeast Asia in terms of profitability, could bottom out this week or next. Interest rates, however, may peak in the country in early 2023. He believes that the situation will calm down in the months to come, thanks to directions, inspections, and close supervision from authorities.

Valuations on stocks in the VN30 is in a reasonable range and some have attractive prices. According to Agriseco Research, seven stocks with potential are BVH, HDB, GAS, HPG, KDH, SAB, and TPB.

Foreign investors posted an unexpected net withdrawal in the first session of the new month on September 5. There remain many stocks going against the trend and attracting strong capital inflows, however, such as steel and chemical fertilizer.

Analysts believe that positive points in the revised Law on the Insurance Business include the removal of limits on investment in stocks and corporate bonds and the granting of permission to invest in trust funds. The revised law also allows foreign investors to own up to 100 per cent of charter capital in insurance or reinsurance companies.

Many analysts believe that, in the short term, the electricity industry will benefit as public investment accelerates. Banks, securities, and real estate also have potential, because these groups are present in every up and down.

Commodity prices have been gradually cooling since the beginning of June, signaling a reversal after the strong increases seen over the past two years. According to Agriseco’s assessment, there will be three main groups of beneficiaries from this reversal: plastics, cement, and cattle.

While global capital is fleeing from stocks and bonds, Vietnam is still attracting strong inflows through exchange-traded funds (ETFs). In June, total inflows from ETFs reached nearly VND1.7 trillion ($72 million), for nearly VND8.4 trillion ($359 million) since the beginning of the year. According to SSI Research, capital from ETFs and active funds coming to Vietnam are now showing signs of shrinking.

According to Ms. Nguyen Thi Phuong Lam, Chief Analytics Officer at RongViet Securities Corporation, public investment will still be promoted this year, with smart transportation stocks joining infrastructure stocks as worthy of consideration. In terms of post-pandemic economic recovery, stocks involved with public utilities, essential consumer groups, and industrial park real estate are likely to fare well.