SSI Securities Corporation's office in Hanoi (Photo: nhadautu.vn) Hanoi (VNS/VNA) - After having declined for four straight weeks, theVietnamese market may rebound in December as analysts and securities companiesexpect that cheaper shares will attract hungry investors amid the world’svolatility.
Thebenchmark VN-Index on the Ho Chi Minh Stock Exchange was almost unchanged onDecember 6 as it gained narrowly by 0.03 percent to end last week at 963.56points.
Vietnam’sbenchmark VN-Index lost a total of 6.0 percent in four trading weeks sincetouching the one-year high of nearly 1,024.91 points on November 6.
Beforetouching that amount, the VN-Index had been boosted by confidence in thepossibility of a signed US-China trade truce and strong earnings reportsproduced by large-cap companies.
But afterthat, the market went into a correction phase with large-cap stocks being hitby increased selling from investors. Among the causes were concerns about thedelay, or worse the cancellation, of the US-China deal.
Anyrecovery days during this period proved to be technical only and investors werevery cautious and unwilling to participate in the market trading, according toSSI Research.
InNovember, foreign investors net-sold a total of 104 billion VND (4.6 millionUSD) worth of local shares on HoSE. That was also the fourth month offoreign net selling on the stock exchange.
Netforeign selling continued in the first week of December as foreigners offloadeda net value of 529 billion VND on HoSE, focusing on selling shares of consumerfirm Masan (MSN).
But SSIResearch forecast the downtrend would benefit the local market as share priceshad been demoted to more attractive ranges.
Trailingprice-to-earnings per share (P/E) ratio of the VN-Index had fallen to 15.74 –the lowest since February 2019, SSI Research said in a note.
Thatmeans local stocks are becoming cheaper and more attractive to investors as themarket’s average base price has dropped.
Onepositive signal was increased trading liquidity, which proved investors werewilling to buy in stocks when the VN-Index fell sharply, thus boosting themarket, SSI Research noted.
Accordingto Yuanta Vietnam Securities Co (YSVN), the Vietnamese market’s P/E is lowerthan other regions such as Thailand (18.8), Indonesia (18.8) and thePhilippines (16.8) while return on equity (ROE) ratio in Vietnam is 14.75 percent– the highest in the region.
Therefore,YSVN expects foreign investment fund would see Vietnamese stocks asopportunities in the short term and foreign capital would help boost the indexto 1,000 points at the end of the year.
Aftertouching the support level of 950 points, the VN-Index declined at a slowerpace and is now accumulating before leaping again, Nguyen Hong Khanh, directorof market analysis department at Vietnam International Securities Co (VIS),told tinnhanhchungkhoan.vn.
Someinvestors may want to make go-ahead runs as they look for stocks with goodquarterly and yearly earnings prospects and good preparation for next year,Khanh said.
Somesectors are namely steel, real estate, construction, banking and retail, headded.
But bothSSI Research and YSVN warned the market would not run smoothly in December asworries about the US-China trade war remain.
Theglobal markets are still at high risk, posing negative impact on the Vietnamesemarket, SSI Research said.
The marketsentiment will be undermined by worries about the US-China trade war with thenext deadline for US tariffs on Chinese imports to take place on December 15,SSI Research said.
If the USgovernment determines to realise the tariffs on schedule, it would likelyescalate the tensions between the two largest economies, YSVN said./.
Thebenchmark VN-Index on the Ho Chi Minh Stock Exchange was almost unchanged onDecember 6 as it gained narrowly by 0.03 percent to end last week at 963.56points.
Vietnam’sbenchmark VN-Index lost a total of 6.0 percent in four trading weeks sincetouching the one-year high of nearly 1,024.91 points on November 6.
Beforetouching that amount, the VN-Index had been boosted by confidence in thepossibility of a signed US-China trade truce and strong earnings reportsproduced by large-cap companies.
But afterthat, the market went into a correction phase with large-cap stocks being hitby increased selling from investors. Among the causes were concerns about thedelay, or worse the cancellation, of the US-China deal.
Anyrecovery days during this period proved to be technical only and investors werevery cautious and unwilling to participate in the market trading, according toSSI Research.
InNovember, foreign investors net-sold a total of 104 billion VND (4.6 millionUSD) worth of local shares on HoSE. That was also the fourth month offoreign net selling on the stock exchange.
Netforeign selling continued in the first week of December as foreigners offloadeda net value of 529 billion VND on HoSE, focusing on selling shares of consumerfirm Masan (MSN).
But SSIResearch forecast the downtrend would benefit the local market as share priceshad been demoted to more attractive ranges.
Trailingprice-to-earnings per share (P/E) ratio of the VN-Index had fallen to 15.74 –the lowest since February 2019, SSI Research said in a note.
Thatmeans local stocks are becoming cheaper and more attractive to investors as themarket’s average base price has dropped.
Onepositive signal was increased trading liquidity, which proved investors werewilling to buy in stocks when the VN-Index fell sharply, thus boosting themarket, SSI Research noted.
Accordingto Yuanta Vietnam Securities Co (YSVN), the Vietnamese market’s P/E is lowerthan other regions such as Thailand (18.8), Indonesia (18.8) and thePhilippines (16.8) while return on equity (ROE) ratio in Vietnam is 14.75 percent– the highest in the region.
Therefore,YSVN expects foreign investment fund would see Vietnamese stocks asopportunities in the short term and foreign capital would help boost the indexto 1,000 points at the end of the year.
Aftertouching the support level of 950 points, the VN-Index declined at a slowerpace and is now accumulating before leaping again, Nguyen Hong Khanh, directorof market analysis department at Vietnam International Securities Co (VIS),told tinnhanhchungkhoan.vn.
Someinvestors may want to make go-ahead runs as they look for stocks with goodquarterly and yearly earnings prospects and good preparation for next year,Khanh said.
Somesectors are namely steel, real estate, construction, banking and retail, headded.
But bothSSI Research and YSVN warned the market would not run smoothly in December asworries about the US-China trade war remain.
Theglobal markets are still at high risk, posing negative impact on the Vietnamesemarket, SSI Research said.
The marketsentiment will be undermined by worries about the US-China trade war with thenext deadline for US tariffs on Chinese imports to take place on December 15,SSI Research said.
If the USgovernment determines to realise the tariffs on schedule, it would likelyescalate the tensions between the two largest economies, YSVN said./.
VNA
