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Stock market recovering strongly: Experts

Vietnam’s stock market has recovered quickly and strongly since the COVID-19 outbreak was brought under control and losses incurred earlier in the year have been reclaimed, a discussion in Hanoi on October 21 heard.
Stock market recovering strongly: Experts ảnh 1Illustrative image (Source: VNA)

Hanoi (VNA) - Vietnam’s stock market has recovered quickly andstrongly since the COVID-19 outbreak was brought under control and losses incurredearlier in the year have been reclaimed, a discussion in Hanoi on October 21heard.

Ta Thanh Binh, Director of the Securities Market Development Departmentat the State Securities Commission of Vietnam (SSC), said 2020 has been a yearfull of changes for the stock market and noted that the benchmark VN-Index lost33 percent in the first quarter.

But the market has bounced back and recovery is “very positive”. It has regainedwhat was lost at the beginning of the year, and market capitalisation currentlyaccounts for 71.3 percent of GDP, she said.

Pointing out that COVID-19 remains a complex issue around the world, BuiHoang Hai, Director of the SSC’s Securities Public Offering ManagementDepartment, said the stock market is operating within the “new normal”. Liquidityhas been higher than expectations.

However, he went on, capital mobilisation has been hampered, with thesum raised equivalent to just 51 percent of last year’s figure, due in part toforeign investors being unable to enter Vietnam to consider potential investmentopportunities because of COVID-19.

In terms of the ratio of foreign investment to total market cap inSoutheast Asia, Vietnam is behind only Singapore and Thailand. Another positivepoint is that the country is now on the watch list for upgrading to secondaryemerging market status, by market rating agencies FTSE and MSCI, Ha noted.

Securities expert Nguyen Duc Khanh highlighted a surge of new accounts beingopened by individual investors since the second quarter, although the number isstill modest compared to the size of the population.

There remains huge space for Vietnam’s stock market to grow and the opportunitiesare numerous for investors, he said, suggesting that investors choose sectors exhibitinggood growth, to minimise risks.

He predicts the market will rebound to 990-1,000 points by the end of theyear./.
VNA

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