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Expert: Low share prices attractive to investors

Expert: Low share prices attractive to investors

Created 16 July 2018
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HCMC – The recent correction on the local stock market is necessary and provides a buying opportunity to investors as share prices have turned much more affordable, said economist Dinh The Hien.

Kết quả hình ảnh cho Expert: Low share prices attractive to investors

Speaking to Dau Tu Chung Khoan website, Hien said stocks remain attractive to investors at the moment. The property market is seen bringing low profitability in 2108 while the domestic gold price is still around VND2 million per tael higher than the global price.

Investing in the greenback is not a wise choice as the dollar may just appreciate by a maximum 5% against the dong. Besides, the Government is still able to control the dong-U.S. dollar exchange rate.

Meanwhile, share prices have been attractive after the recent deep correction, offering a good buying opportunity to medium-term investors, Hien said.

Vu Quang Dong, general director of Vietcombank Fund Management Company, said investors overreacted to market risks as the Government has recognized external challenges and is ready to apply flexible policies to meet macro-economic targets.

“What we should do is to wait and see how the Government will deal with the challenges,” Dong said on vietstock.vn.

The market continued unusual fluctuations, going through eight recovery sessions in a row in early June after slumping rapidly in April and May. It has resumed its downturn over the past month, with a heavy loss on July 5 sending the VN-Index down below 900 points.

There are many reasons for the market decline, including the sharp rallies of a number of large caps in 2017 and the first quarter of 2018. In addition, the greenback has turned firmer after the U.S. Federal Reserve has lifted up interest rates twice this year, with three more hikes predicted from now to the end of the year.

However, according to Dong, the local economy remains solid with positive growth rates of the gross domestic product, production and service sectors reported in the second quarter. Therefore, the market still has a bright outlook in the long term, with listed firms seen obtaining better business results in the coming time.

The VN-Index rose for a second day last Friday, closing up 1.25% at 909.72, but trading value on the Hochiminh Stock Exchange remained subdued at VND2.8 trillion.

Despite the back-to-back gains, the index fell 0.9% for the week for a fifth straight week of losses.

Banks led the market higher, including VCB, CTG, BID, VPB and MBB. Retail group FRT hit the ceiling price, extending a 13% jump over the last four days.

Source: VOV

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