Tag: 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.

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.

According to Mr. Trinh Hoang Giang, CEO of HSC Securities, Vietnam’s stock market has fallen about 20 per cent and is likely to go down further, but the country’s economy is solid, with GDP growth forecast at 6-7 per cent this year. Now is therefore a good time to buy stocks, he believes.

Yuanta Securities has forecast that during the portfolio restructuring period in the second quarter, two foreign funds with a size of nearly $1 billion - the FTSE ETF (exchange-traded fund) and the V.N.M ETF - will strongly buy four stocks: FTS, SHB, NLG, and VCG.

In an update on Vietnam’s stock market outlook, the Pyn Elite Fund said global stocks may go down in the future but Vietnamese stocks, based on current valuations, are extremely cheap. The Finnish fund also expects that Vietnamese stocks will not be overly affected by the conflict in Ukraine or any collapse in the Nasdaq, and forecast income growth of 19-29 per cent this year.

Vietnam’s economy is clearly recovering and gross regional domestic product (GRDP) and retail sales are both increasing around the country. According to the General Statistics Office, the total retail sales of consumer goods and services in the first quarter rose 4.4 per cent year-on-year. The business expansion plans of some retailers will also make the market more active, opening up opportunities for retail real estate stocks to break out.

According to SSI Research, when Vietnam fully opens its doors to international tourists on March 15 there will be three groups of stocks that will benefit: travel stocks, tourist accommodation stocks, and travel transport stocks. The tourism industry aims to welcome 65 million tourists this year, including 5 million international visitors.

There are many signs that stocks in the public investment group will break out in the near future.

Figures from the General Department of Vietnam Customs show that the US imports the most textile products from Vietnam and is also the largest market for Vietnam’s wood and wooden products. Textiles and wood are now among the groups with the largest number of stocks and attract the most attention from stock market investors.

Analysts believe that banking stocks will lead the way in Vietnam’s stock market this year, though price growth may ease.

It has been forecast that the inflation rate in Vietnam will probably exceed 4 per cent year-on-year in the second quarter, due to increases in the global prices of electricity, pork, and oil. Viet Dragon Securities believes that banking shares have clear profit growth prospects in the second half of the year, while steel, retail, warehousing, and exporter shares are also expected to attract cash flows.

Industrial real estate stocks set to benefit in 2022, VnDirect has said.

Vietnam has available foreign exchange reserves of more than $100 billion and debts below 40 per cent of GDP, which are mostly soft loans from supranational lenders on favorable terms. Such debts do not increase the country’s vulnerability to tightening global monetary policy. Experts from VinaCapital believe that Vietnam is in a favorable position and will be under no pressure when the US Fed hikes interest rates this year.

SSI Securities has assessed that food and beverage (F&B) stocks will recover and grow in 2022 thanks to the recovery of the economy, changes in consumer preferences, and the development of new modern trade channels. Certain stocks, however, will recover to below pre-pandemic levels, SSI added.

Together with the number of new stock market accounts continually setting records, individual investors net bought stocks during 2021 to the tune of more than $4 billion and this is forecast to prevail into 2022. Mr. Tran Hai Ha, General Director of MBS Securities Company, expects 2022 to again be a successful year for investors in the stock market.