Vietnam Stock Market News

Vietnam Financial News

Stock market will record a new peak in August, investors feel 2009-08-06 - VNS

Many investors are expecting that the stock market will record a new peak within this month based on their analysis of the global and domestic finance and economic movements, business results of listed firms, money flow, net purchase of foreign investors and the onward trend of VN Index.

Firstly, the financial and economic condition of the world and Vietnam seem to be recovering. The global finance recession according top some has already touched its bottom and now only thing is that how will long it take to creep up.

Meanwhile, Vietnam's economy is showing signs of surging again in the second quarter of 2009 with the double growth of GDP against Q1. In July alone, the industrial production value increased by 7.6 percent, higher three times than Q1 while the total retail sales and services grew by 8.3 percent in Jan-Jul, higher than GDP growth.

Especially, the committed FDI capital during the first seven months has tumbled year-on-year but higher than the figure of the whole 2005. July Inflation rose by 3.22 percent month on month. Also, the trade deficit was estimated at $3.378 billion against 2008's $15.198 billion.

Secondly, most listed companies publicised their H1 business results with Q2 performance better than Q1.

Thirdly, after 42 transaction sessions on Hochiminh Stock Exchange (STC), the trading value continuously achieved over one trillion dong each session, notably 12 sessions recorded over two trillion dong each. On July 3, 9, 15 and between July 15 and 24, the market trading value was below one trillion dong. Many people were afraid of the market's liquidity when the securities backed lending was tightened. But since July 27, the value still was kept at over one trillion dong, showing that the money flow still stayed at the investment channel.

Other, foreign investors switched from net sales to net purchase that increased from 103.7 trillion dong in Jun to 1.797 trillion dong in July. Foreigners' trading rate on Vietnamese stock market surged from below 15 percent to 25 percent.

Lastly, the VN index in late July closed at 466.76 points, up 4.12 percent slightly from the last session of June and this seemed to finish a correction period.

Moreover, the some worries that money is flowing into the real estate market seemed to vanish when property prices are standing still with less transactions. Some specialists predicted that VN Index could surpass 550 point threshold by the year end. If the money flow continues being poured into the market, VN Index could soon exceed the previous peak of 512 pts just this month.