Stock market offers rich opportunities

Experts claim all the elements are in place to make stocks the preferred investment 

Based on the economy’s results this year in conjunction with the predicted effects of the government’s policies next year, experts believe that the real estate market will not necessarily experience an easy recovery and the gold and foreign currency markets are likely to remain tightly controlled.

Financial expert Nguyen Tri Hieu was upbeat about the stock market’s prospects.  “In a positive scenario, the VN-Index will increase by at least 30 per cent compared with the end of 2013, equal to 600-650 points in 2014,” he said.

The attractiveness of the stock market is said to be result of positive macroeconomic developments.

According to economist Vu Dinh Anh, a low consumer price index (CPI) has helped create the conditions to stabilise the macro economy and implement solutions to enhance gross domestic product (GDP) growth in 2014. Anh claimed the GDP growth of 5.8 per cent and the CPI target of 7 per cent next year were quite achievable. These indicators were sufficient grounds for optimism about the stock market, he claimed.

The more healthy economy would also help listed companies recover. Tran Van Dung, chairman and general director of Hanoi Stock Exchange (HNX) said inventories among listed firm were decreasing, their losses were smaller and profits higher. In the coming time, as the economy recovered more, listed enterprises would post brighter profit forecasts.

“These will be the basic factors that will help the stock market in 2014, thereby offering more attractive investment opportunities to investors,” said Dung.

Tran Quang Vinh, investment director of Thien Viet Securities Company said the stock market was recovering well with improved liquidity and was receiving greater interest from foreign investors.

An additional factor that could point to a resurgence of the stock market next year included the potential lifting of the 60 per cent cap for foreign share ownership for listed companies, which was mentioned in the draft decision submitted to the prime minister by the State Securities Commission last November.

“In addition, the positive progress in negotiating the Trans Pacific Partnership (TPP) might generate sharp changes in the stock market in 2014,” said Tran Minh Hoang from Vietcombank Securities Company.