Stocks thrive as market reaches new highs

  • 05:35 - 2018/02/05

The current rise of the stock market reminds investors of days 10 years ago, when any purchase would bring high profits to investors.

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No one thought the VN Index could soar by 50 percent

“No one thought the VN Index could soar by 50 percent,” Tran Thanh Tan, CEO of VFM, a fund management company, said about the stock market in 2017, adding that the prosperity went far beyond expectations.

In early 2017, even the most optimistic analysts did not think the VN Index would reach the 900 point threshold by the end of the year. They only predicted modest growth rate of 4-5 percent.

However, contrary to all predictions, new records were broken before the VN Index reached 984 points at year end, or 48 percent compared with the beginning of the year, while the trading volume increased to VND5 trillion per trading session.

The upward trend continues in the first month of 2018, when resistance thresholds of 1,000 points and 1,100 points were broken. The VN Index soared to 1.114 points, just 60 points lower from the highest peak gained 10 years ago.

“Just don’t buy the shares of the companies which have problems in business performance or governance, and you won’t take a loss at this moment,” said Tuan, an investor. 

The upward trend continues in the first month of 2018, when resistance thresholds of 1,000 points and 1,100 points were broken. The VN Index soared to 1.114 points, just 60 points lower from the highest peak gained 10 years ago.

“The current market is just like 10 years ago, when all investors could make a profit,” he added.

Nguyen Duy Hung, chair of the Saigon Securities Incorporated (SSI) commented that it would be good to raise $1 billion worth of capital from the stock market like five years ago.

In fact, investors did not expect the VN Index to bounce back to the 1,000 point threshold. 

Three months ago, Trinh Hoai Giang, deputy CEO of the HCMC Securities, predicted that the trading volume of 10 trillion per trading session would only be seen in two or three years. 

But in fact, the volume of many trading sessions in the first months of 2018 was even higher than VND10 trillion.

The continued increase of the stock index has prompted investors to pour more money into the market. Foreign investors’ net purchase reached VND30 trillion in 2017, which had never happened in the post-crisis period.

Tan of VFM said he can see big differences between the stock market in 2007 and the stock market in 2017-2018.

Both Hung of SSI and Tan believe Vietnam stock market will have another prosperous year in 2018.

M. Ha

Source: VietNamNet

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