March 05, 2012
Vietnam’s stock market attracts money
Vietnam is hoping that falling inflation and rising Global risk appetites will spur sustained interest in the Country’s small stock market.
Cheap valuations and optimism that Vietnam is getting on top of deep economic problems have attracted share-buyers this year.
The Country is 1 of the World’s top performing equity markets so far in Y 2012. The benchmark index for the main bourse, the Ho Chi Minh City Stock Exchange, was up 20.5% through last Wednesday.
The Big Q is sustained performance. the market needs to be broader and deeper to move well away from being an adventuresome up and down ride.
Vietnam’s stocks fell 66% in Y 2008, during the Global financial crisis. The index rebounded 57% the next year, but in Y 2010, a strong year for most Asian markets, Vietnamese shares dropped 2%. Then it fell 27% in 2011.
There is encouraging economic news. Sky-high annual inflation, which hit 23% in August, is falling, reaching 16.4% in January. Economists expect that monetary authorities can start cutting interest rates in 2-H of 2012, unless World Crude Oil prices spike, pushing inflation back up.
On order to draw more investors the government is putting in more concrete reforms to Vietnam’s public finances and shaping up inefficient, indebted state-owned enterprises to get listed.
To try deepen the market, officials in Vietnam have indicated that a long-clogged pipeline of initial public offerings (IPO) will reopen, and stakes in major state-owned enterprises will be sold.
Vietnam has said it plans to allow exchange-traded funds and open-end funds to operate.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
www.livetradingnews.com
No comments:
Post a Comment