PYN Elite believes this year’s index could reach 1,500 points, after ending 2020 with 1,097 points.
|PYN Elite expects the VN-Index could grow almost 50 per cent this year |
According to investment fund PYN Elite, banks’ whole year earnings growth is likely to reach a robust 35-40 per cent increase on-year.
The brisk price gains in the property market have increased speculations about the State Bank of Vietnam’sintervention in the market. However, this should be short-lived, and PYN Elite expects this year’s earnings growth will push the bank stocks to higher levels.
Strongly cyclical steel companies have had a big role in the performance of the VN-Index.
The fund does not have in its portfolio Hoa Sen Group’s shares, which has a strong weighting in the index, or any other steel companies.
Recently, Vingroup’s holding company’s VIC stock spiked as the company announced plans to expand manufacturing of Vietnamese car brand Vinfast in the US and possibly be listed in the New York Stock Exchange. So far, the company has made losses with its car business.
“We do not have any position in Vingroup’s shares, we would rather not bet on a new brand entering the US automobile market, as we concentrate on our holdings with the companies that benefit from the high growth of the domestic demand in Vietnam,” Petri Deryng, portfolio manager noted.
“We share the consensus forecast that the Vietnamese stock market can continue to perform well this year due to the solid earnings growth as well the bright outlook for years to come. In the first quarter, the foreign investors have been net sellers in the Vietnamese stock market, but we believe the tide must turn as the year goes along,” he added.