The Vietnamese stock market ended a rough year of 2014 with continued growth.
The VN-Index reached 545.63 points, rising 8.1 percent, and the HNX-Index finished at 82.98 points, up 22.3 percent over 2013.
Thetotal market capitalisation hit 1.12 quadrillion VND (52.58 billionUSD), an increase of 172 trillion VND (8 billion USD) compared with2013, and accounting for 31 percent of Vietnam's GDP.
In 2015, the indexes rose before the Lunar Tet holiday, with the markets closing at 587.24 points and 85.26 points respectively.
Accordingto the State Securities Commission President Vu Bang, the local stockmarket this year will be supported by a brighter economic outlook.
"Thepolicies that the government issued last year, as well as those to beissued this year in terms of improving business environment, joiningfree-trade agreements and pushing the process of restructuring thebanking and State sectors, will be major forces helping the economyrecover," he said.
The domestic stock market would seeimprovement in both size and liquidity, he affirmed. "In addition,indirect foreign investment will also increase as regulations on foreignownership are expected to become much more flexible."
Theabove-mentioned expectation is not without basis. The country's consumerprice index last year rose only 1.84 percent over 2013 — when the indexjumped 6.04 percent year-over-year — becoming the lowest increase in 10years, while GDP growth reached a three-year high of 5.98 percent.
The most serious impacts on the stock market last year came from disputes over the East Sea and the falling world oil prices.
TranThanh Tan, President of the Fund Management Club, alleged that shareprices were affected strongly, more by investor sentiment than thequality of the stocks. While domestic investors were under pressure tosell, foreign players took the opportunity to buy in. Vietnamese shareinvestors are expected to be wiser this year, after those mistakes.
Chen Chia Ken, CEO of Phu Hung Securities Company, has told infonet.vn that the market will stabilise in 2015.
Many other executives from securities firms are also positive thatthe VN-Index will reach at least 630 points this year. Particularly,MayBank Kim Eng's head of research and analysis Nguyen Thi Ngan Tuyenhas predicted that indexes will surge in the first two quarters of theyear.
The brokerages also expect that real estate stocks willrebound, thanks to the rally of the property market. In addition,investors can consider shares of companies that will benefit fromfree-trade agreements such as export and logistics. Apart from realty,banking stocks are also forecast to be active as the Circular 36 onenhancing credit institutions' capital adequacy ratio has taken effect.
TongVan Thach, a 42-year-old investor in Hanoi, said, "I have been familiarwith the stock market for more than two years, but have not seen muchprofit. I hope the year of the goat [the lunar calendar] will changethat."-VNA
The VN-Index reached 545.63 points, rising 8.1 percent, and the HNX-Index finished at 82.98 points, up 22.3 percent over 2013.
Thetotal market capitalisation hit 1.12 quadrillion VND (52.58 billionUSD), an increase of 172 trillion VND (8 billion USD) compared with2013, and accounting for 31 percent of Vietnam's GDP.
In 2015, the indexes rose before the Lunar Tet holiday, with the markets closing at 587.24 points and 85.26 points respectively.
Accordingto the State Securities Commission President Vu Bang, the local stockmarket this year will be supported by a brighter economic outlook.
"Thepolicies that the government issued last year, as well as those to beissued this year in terms of improving business environment, joiningfree-trade agreements and pushing the process of restructuring thebanking and State sectors, will be major forces helping the economyrecover," he said.
The domestic stock market would seeimprovement in both size and liquidity, he affirmed. "In addition,indirect foreign investment will also increase as regulations on foreignownership are expected to become much more flexible."
Theabove-mentioned expectation is not without basis. The country's consumerprice index last year rose only 1.84 percent over 2013 — when the indexjumped 6.04 percent year-over-year — becoming the lowest increase in 10years, while GDP growth reached a three-year high of 5.98 percent.
The most serious impacts on the stock market last year came from disputes over the East Sea and the falling world oil prices.
TranThanh Tan, President of the Fund Management Club, alleged that shareprices were affected strongly, more by investor sentiment than thequality of the stocks. While domestic investors were under pressure tosell, foreign players took the opportunity to buy in. Vietnamese shareinvestors are expected to be wiser this year, after those mistakes.
Chen Chia Ken, CEO of Phu Hung Securities Company, has told infonet.vn that the market will stabilise in 2015.
Many other executives from securities firms are also positive thatthe VN-Index will reach at least 630 points this year. Particularly,MayBank Kim Eng's head of research and analysis Nguyen Thi Ngan Tuyenhas predicted that indexes will surge in the first two quarters of theyear.
The brokerages also expect that real estate stocks willrebound, thanks to the rally of the property market. In addition,investors can consider shares of companies that will benefit fromfree-trade agreements such as export and logistics. Apart from realty,banking stocks are also forecast to be active as the Circular 36 onenhancing credit institutions' capital adequacy ratio has taken effect.
TongVan Thach, a 42-year-old investor in Hanoi, said, "I have been familiarwith the stock market for more than two years, but have not seen muchprofit. I hope the year of the goat [the lunar calendar] will changethat."-VNA
