World

Vietnam's stock market ready for rebound as negative factors ease: economist

HANOI
2023-11-14 16:51

Already collect



HANOI, Nov. 14 (Xinhua) -- The prospects for higher Vietnamese stock prices in the months ahead are supported by rebounding earnings growth, a rebounding economy, and the market's cheap valuation, Vietnam News reported Tuesday, citing Michael Kokalari, chief economist at VinaCapital.

The prediction was made given the context that the negative factors that affected the stock market are in the rear-view mirror. All of the transient negative factors have already abated or are easing.

Kokalari said, "We expect EPS earnings growth to rebound to 35 percent year-on-year in Q4 2023 and 20 percent in 2024 largely because the sharp slowdown in Vietnam's economy earlier this year has clearly ended, evidenced by a rebound in GDP (gross domestic product) growth from 3.3 percent year-on-year in Q1 to 4.1 percent in Q2 and 5.3 percent in Q3."

"High-frequency economic data for October confirmed our recent assertions that Vietnam's manufacturing activity and exports are now recovering, reinforcing our expectation that the GDP growth will rebound to 6.5 percent next year," he said.

According to the Vietnam News report, stock market technicians characterize reduced selling enthusiasm during a sharp market decline as a likely sign that the market will enjoy a robust rebound once the factors causing the sell-off abate, which helps explain the fairly strong performance of the market by the end of the first week of November.
Add comments

Latest comments

Latest News
News Most Viewed