2011 to be a good year for securities investors

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VietStock FI English - 83 month(s) ago 8 readings

Experts believe that the expected lower inflation rate in 2011 would bring opportunities to securities investors. When talking with the press agencies on the predictions about the stock market in 2011, Vu Bang, Chair of the State Securities Commission said that it is very difficult to forecast the demand in 2011. However, Bang said that securities investors consider many factors, including the monetary policies, the financial policies and other investment channels (Gold, foreign currencies, real estate), in order to predict the impacts on the stock market.

Meanwhile, Le Xuan Nghia, Deputy Chair of the National Finance Supervision Council, thinks that the inflation rate may decrease from March 2011, which will help force the interest rates down, thus helping push the VN Index up.

Explaining his predictions about the inflation rate decreases from March 2011, Nghia said that the consumer price index was high at some moments due to the impacts of the price increases of some goods, such as education services? and food products. However, the impacts of the education goods prices will not be seen in the first months of 2011. Meanwhile, the food prices will reach its peak in February 2011, the Tet month and will not increase further.

Some experienced investors also think that the stock market will be bustling in 2011, when many individual investors who have left the market will return. However, the investors will first consider the changes of the national economy and the attractiveness of the stock market

Another capital flow to the stock market, analyst say, will come from foreign investors. Vietnam’s stocks are now considered cheaper than the stocks in regional countries. This explains why foreign investors have made net purchases over the last many months, and the big demand from foreign investors will continue in the upcoming months.

Meanwhile, it is also very difficult to forecast the supply in the stock market. A lot of enterprises have planned their stock issuance. Meanwhile, commercial banks will have to increase their chartered capital to three trillion dong by the end of 2011, and analysts believe that the supply will be profuse when banks have to issue shares to increase capital.

Representative from the State Securities Commission said that in 2011, one of the urgent tasks for the commission would be to compile the legal documents that guide the implementation of the amended Securities Law which will take effect in 2011.

Especially, many Vietnamese securities investors now dream of investing in Lao securities, since Lao stock market officially opened several days ago.

As the domestic stock market remains quiet, which does not bring profit for Vietnamese investors, they now look for profit in the Lao securities. A foreign newspaper quoted Mark Mobius, considered one of the best fund managers in the world, as saying that Laos is one of the few newly emerging markets which is particularly attractive. The same person once also said a similar thing about Vietnam’s market.

Meanwhile, a representative from a domestic securities company which has contributed capital to a securities company in Laos, also said that there is a new wave of Asian securities investors flocking to Vientiane to seek opportunities in the fledgling market.

However, Nguyen Hoang Hai, Secretary General of the Vietnam Association of Financial Investors, warned that it was not so easy to earn money from Lao securities market. He said that though Laos can learn from Vietnam, there are still many problems that need to be settled.

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