Stock market will prosper in 2007
No one knows how the country’s stock market will perform in 2007.However, according to a forecast from the newly established Kim Long Securities Co, the stock market will likely see a correction in stock trade and it may fall slightly by the end of the second quarter or the start of the third quarter of 2007, forecasted Pham Vinh Thanh, deputy director of the Kim Long Securities Co Nonetheless, according to Thanh, 2007 will still see the prosperity in the domestic stock market and investors are still have big opportunities to earn profits.
The basis for Thanh’s assessment is that along with the guidelines on changing the mechanisms for transactions at the two securities transaction centres is the upgrading of securities transaction systems. It is estimated that the number of trading accounts will increase by three or four times the current amount to reach between 400,000 and 500,000 accounts.
In addition, some giants are to make initial public offerings (IPO) including MobiPhone, Vietcombank, Bidv, Incombank, the Vietnam National Insurance Corp, so the stock market will continue to grow strongly.
“It is forecast that by the end of this year, the VN Index will likely hit between 1,200 and 1,500 points (VN Index yesterday March 5 reached 1,158.9 points), the share transaction value will also increase to between two and three trillion dong per day instead of between one and 1.5 trillion dong,” said Thanh.
“Recently, on informal market trades and the internet, there has been information on offering to sell shares of the Kim Long Securities Co, whilst Kim Long has yet to issue its shares. Therefore, investors should be cautious,” warned Thanh.
Thanh also said that to date, all founder shareholders have pledged to work closely with Kim Long and will not make any share transfers.
On March 3, the Kim Long Securities Co’s shareholder meeting passed a plan to raise its chartered capital by issuing shares to their bigger shareholders.
The capitalisation of the stock market, which opened in July 2000, now trades shares in 107 listed companies and has risen to roughly US$15 billion with the index growing by more than 200% since the end of 2005.
Vietnam’s government has said it aims to boost the stock market’s capitalisation to over US$20 billion by the end of the year, or 30% of gross domestic product.
It wants to expand the economy by up to 8.5% this year after a growth of 8.3% in 2006.
Category: Stocks
