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Brighter future for VN Index: securities company

The Saigon Securities Inc (SSI) has forecast a brighter future for the local stock market, powered by gradual economic recovery and the ongoing reforms.
The Saigon Securities Inc (SSI) has forecast a brighter future forthe local stock market, powered by gradual economic recovery and theongoing reforms.

It believes that the VN Index might reach 590-600 points by the end of this year.

SSI's market outlook, issued in January 2014, estimates that the VNIndex can increase by 17 to 20 percent compared with its closing levelof 504.6 at the end of last year.

It says that the local marketwill be powered by gradual economic improvement and the ongoing reforms,which will trigger positive catalysts such as the extension of ForeignOwnership Limit, new IPOs or mergers and acquisitions of banks.

It also says that industry and related sectors such as infrastructureconstruction, building materials and industrial wharfs are the preferredsectors this year.

According to its calculation, with a 5percent dividend yield added, the average total return from Vietnam'sequity market would be 23 percent in 2014, and the turnaround stocks areattractive as many turnaround companies have just transitioned from‘loss' to ‘profit-making' status.

The SSI also forecast betterrevenue growth with support from lower Corporation Income Tax, down from25 percent in 2013 to 22 percent in 2014, no salary cuts and a slightlylower interest rate in 2014.-VNA

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