Listing of shares by big corporations will make Vietnam's stock market more attractive, Mark Mobius, said one of the ten most famous monetary managers in Asia.
Share values in Vietnam's stock market are likely to increase by 10 percent parallel with the market's index point growth. In the second quarter, Vietnam's stock market reported the best growth in Asia.
Vietnam Bank for Foreign Trade (Vietcombank), the country's third largest bank in terms of assets officially listed its shares on HCM City Stock Exchange (Hose) on June 30. Prior to such a move, Bao Viet Insurance Corp, Vietnam's largest insurer, also listed shares a week earlier and now Vietnam Industrial and Commercial Bank (Vietinbank) is all set to trade its shares on July 16.
Managing director of Templeton Asset Management Mark Mobius feels that listing shares of big corporations will make Vietnam's stock market become more attractive after the key index of the market fell by 66 percent in 2008.
Mobius while talking to media opined that the listing of big corporations will help improve liquidity of Vietnam's market.
Vietcombank's shares in the first trading session rose by 20 percent, the allowed maximum level in the first trading day, and closed at 60,000 dong a share.
VnIndex increased by 60 percent in the second quarter, the strongest growth among Asian stock exchanges and the second highest in the world, only following PFTS of Ukraine's market that rose by 78 percent.
Since the start of this year, VnIndex has surged by 42 percent, the fourth strongest growth among the world's stock exchanges.
Beat Schuerch, chief representative from Indochina Capital Advisors, says "We need a market with higher capitalisation. And, we believe that equitisation in Vietnam will continue developing well."
The World Bank in a report released on June 8 said that the index increase of Vietnam's stock market has offered more opportunities to share issuance. WB called Vietnam for changing its structure to ensure long-term growth.
Nguyen Hoa Binh, chair of Vietcombank's executive board, said that listing shares by this time is good because the market is recovering.
Meanwhile, Louis Nguyen, managing director of Saigon Asset Management with total managed assets of $125 million, said that the index increase may not last long.
MSCI Index including Vietnam's market, fell for two consecutive sessions after WB on June 22 released its global economic forecasts for 2009, which said that the global economy will go down much more than previously predicted.
Louis Nguyen said that people are very optimistic about Vietnam's stock market and corporate profits; however they still feel that the global economic downturns will impact Vietnam's export.
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