Vietnam’s benchmark VN-Index projected to jump 18% in 2019: Bloomberg
The high growth would come from stable economic growth and cheap valuation of Vn-Index.
The benchmark VN-Index could rise to 1,049 points by the end of December, implying an 18% advance for 2019, according to the average of experts surveyed by Bloomberg.
Illustrative photo.
|
Brader predicted the nation’s benchmark to surpass its 2018 high and saw a fair chance of the index doubling from here in the next three to five years. The gauge hit a record of 1,204 in April, and rising above that level would mean an advance of more than 35% for 2019.
According to Bloomberg, experts cited their optimism from Vietnam's stable economic growth, which has been expanding more than 5% a year since 2000, and the cheap valuation of the VN-Index.
The benchmark index trades at about 14 times estimated earnings for the next year, down from more than 20 times in April 2018.
Risks this year will be mostly external, with the trade war between the US and China a point of focus, analysts said. A slowing global economy and a rebound in oil prices are other perils cited for Vietnam.
Michel Tosto, head of institutional sales and brokerage at Viet Capital Securities in Ho Chi Minh City, expected activities of both local and foreign investors will be more muted. Investors will look for diversification, and investing in both stocks and bonds is not a bad idea, he added.
While the nation’s economic expansion will be slower -- it’s expected to be 6.6%, down from 7.1% in 2018 -- he said foreign direct investments will remain strong and the local currency will keep outperforming most of its peers in 2019.
Bernard Lapointe, head of research at Viet Dragon Securities in Ho Chi Minh City, forecast the VN-Index will stay in a fairly tight range between 900 to 1,000. A move below or above these levels will depend on the geopolitics and macro headwinds.
Lapointe added that the biggest issues for the VN Index are external. Domestically, EPS growth is fine. The dong has stabilized, and the central bank is doing a good job of managing inflation expectations.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport