Expert: Stock market cap to rise to US$200 billion

 Total capitalization of Vietnam’s stock market is predicted to reach U$200 billion this year, buoyed by  many favorable macro conditions, said Hoang Cong Tuan, head of economic research at MB Securities Company.


Expert: Stock market cap to rise to US$200 billion, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news



Local equities have made significant improvements in recent times. Large initial public offerings by leading enterprises have also drawn the attention of international organizations.

Therefore, the market has seen its total capitalization soaring to a new high of US$140 billion and the figure may rise to US$200 billion in 2018, Tuan was quoted by vietstock.vn as saying.

Vietnam is poised to become an emerging market. Meanwhile, as the global oil price is expected to bounce back to around US$60-70 per barrel, investors may explore opportunities to invest in the oil and gas, refining and petroleum service sectors.

Besides, the securities firm has estimated the main index could leap to a new high of 1,280 points.

Tran Hoang Son, head of the company’s market strategy department, said the market has established a steady growth trajectory with the main index now standing in the middle of this cycle.

Aside from macro-economic conditions, investors pay attention to companies going to list on the market, the State’s divestment from enterprises and firms with good profit growth prospects. This year, up to 70 companies are expected to go public, including potential names such as PetroVietnam Oil Corporation, PetroVietnam Power Corporation, Vietnam Rubber Industry Group and leading power generation firms.

In the coming time, the banking sector may maintain credit growth of18-20% while retail, consumer goods, plastic and property firms may also perform well, he said.

The VN-Index eked out a small gain of 0.19% last Friday to extend its winning streak to 14 of the last 15 trading days. For the week, the index advanced 3.7%, its best week since late November and has increased 18 of the last 21 weeks.

Trading on the HCMC market was strong at VND9.6 trillion, well above the daily average of last year of VND4.3 trillion.

Property firm VIC and its retail subsidiary VRE were the two top contributors to last Friday’s gains. Meanwhile, investors flocked to take profit at banks after recent strong rallies.

Electricity firm NT2 jumped to a record high, extending a 50% surge over the last four months. NT2’s parent company, PetroVietnam Power Corporation, is planning an initial public offering for later this month.

SGT

Expert: Stock market cap to rise to US$200 billion, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
 
*
*
*
  Send