An investor looks at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
Vietnam’s benchmark VN-Index could peak at 1,435 points this year with a surging number of new investors amid prospects of economic recovery, a brokerage forecasts.
The figure is set to increase by up to 20-30 percent from the end of last year to be in the 1,325–1,435 range, Vietcombank Securities VCBS reported.
Analysts based their projections on the recovery of the economy post-Covid-19 with GDP growth expected to hit 6.8–7 percent this year, compared to 2.9 percent last year.
The country has seen surging growth in trade figures despite rising logistics costs, while domestic consumption is expected to recover and exceed last year’s figures, they said, adding increased public investment on infrastructure will further drive economic recovery.
Vietnam’s stock market is booming with the benchmark VN-Index repeatedly hitting new historic peaks this year, closing on an unprecedented 1,252 points Monday as trading value surged to the year’s highest.
The bull market is said to be led by new domestic investors’ money even as foreigners net sold over VND14.17 trillion ($615 million) on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange in the first quarter.
A total 113,875 new trading accounts were opened in March, the highest monthly figure ever, bringing the total number to 3.02 million, equivalent to 2.8 percent of Vietnam’s population.
VCBS considers the sector of basic construction materials manufacturing to have high growth prospects thanks to the government’s expected increase in public spending on infrastructure.
Port and logistics tickers are set to benefit from rising demand for transporting goods as companies move their supply chains to Vietnam, it added.