Experts expect stock resurgence

Speaking at a dialogue on stock market opportunities in the second quarter held today by Dau Tu Chung Khoan - VIR’s sister publication, chairman of the State Securities Commission Vu Bang said there were many indications of a surge.

“The possibility of the Trans-Pacific Partnership (TPP) being signed soon and positive macro-economic indicators including GDP and CPI are likely to support the market. Also, the governments moves to step up equitisation and capital withdrawal from state-owned enterprises and consideration of a higher foreign ownership ratio in listed companies should help to bolster the market,” Bang said.

Nguyen Xuan Nam, chief analyst at Bao Viet Securities Company, also was positive about the market’s potential for the rest of the year given the government’s restructuring efforts.

He added that the VN-Index this year was expected to again reach its peak of 635 points, not seen since 2009.

Over the last several weeks the market has witnessed sharp declines over several sessions after impressive growth in the first quarter that saw it go over 600 points for the first time in 52 months.

According to Nguyen Van Dung, general director of Tan Viet Securities Incorporation, the decline is just reflective of cash flow temporarily awaiting new opportunities.

He added that other investment channels such as gold, real estate and high-interest deposits were not popular now, and therefore the stock market still has its popularity.

Phan Anh Vu, deputy general director of Vietcombank Securities (VCBS), said the economy showed gradual recovery but had not yet experienced a breakthrough, so businesses were still struggling.

He suggested investors choose specific sectors in which to invest, such as oil and gas, energy, or infrastructure, construction, export, logistics, which are forecasted to continue growing in the second quarter.

Hoang Cong Tuan, an expert at MB Securities Company (MBS), recommended investors consider a number of companies in areas likely to see positive growth in 2014, such as real estate, securities, construction materials, and consumer goods.