Great opportunities exist for securities investors in second quarter

Created 14 April 2017
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The eventful first quarter of 2017 ended with the closing VN Index at 722.31 points on March 31.

The VN Index of the HCMC bourse increased by 1.6 percent in March and 8.6 percent in the first quarter of 2017. The average trading value of the HCMC Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) hovered around 3.562 trillion per trading session, 27 percent higher than the same period last year.

The figures show positive cash flow into the market, igniting new opportunities in the second quarter.

In the first three months of the year, the market mostly went flat. However, improved liquidity created momentum for the VN Index to conquer new peaks, with the uptrend in the medium and long term strengthened.

As the VN Index surpassed its 9-year peak, investors feared there would be a correction. 

Meanwhile, there was profit-taking pressure from shares with high capitalization value and blue chips which saw prices increasing significantly in 2016.

The plentiful supply in the market pushed liquidity and capitalization value. The supply was from equitized enterprises that have had launched IPOs and entered the bourse, including Vietjet, Vietnam Airlines, Quang Ngai Sugar and Novaland (real estate developer). 

In Q1, foreign investors bought more than sold by VND3 trillion on HOSE, which was equal to 5 percent of the market’s total transaction value. This means the major demand came from domestic cash flow, attracted by the increased share supply, especially newly listed ones. This will cause the market to be more active in the second quarter.

It is now the shareholders’ meeting season in March and April. The 2016 business results and dividends will be the main factors to determine stock prices in the second quarter.

The prices of some enterprises have increased sharply after positive information was released at shareholders’ meetings. 

Dat Xanh, a real estate developer, for example, has announced significant growth in brokerage services and reported the delivery of products at Opal Garden and Opal Riverside, planning a high growth rate of 30 percent in post-tax profit in 2017.

The shares of steel manufacturers, including Hoa Phat, Hoa Sen and Nam Kim, have increased significantly after a period of going flat as they are supported by the news that the Ministry of Industry and Trade has decided to impose anti-dumping duties on galvanized sheet metal imports.

Investors are now hunting for shares of enterprises which have had IPOs and plan to enter the bourse. Kido Foods (KDF), which had an IPO in March at VND52,000 per share, plans to enter UpCom in April.

 

 

Source: VietNamNet

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