NFSC forecasts a better future for local stocks

Wednesday, Oct 30, 2013 17:26

Vietnamese stock market passes its bottom level to rise by year end.— Photo

HA NOI (Biz Hub) — A newly-released report by the National Financial Supervision Commission of Viet Nam (NFSC) on the local economy offered reasons to be cheerful for the Vietnamese stock market.

The report said, excepting June and August when the world economic situation was not so good due to the feared cancellation of the US support package and the uncertainty around an invasion of Syria, the VN- Index tended to rally month after month.

Up to October 23, the VN-Index rose 1.79 per cent from September and 21.1 per cent from earlier this year.

The report also said liquidity was not so high but was steady through each session and gradually increased each month.

The average transaction volume in October was VND1.094 trillion (US$52.09 million) per day, while it was VND744 billion ($36.8 million) in September. The report also found that in the three months since June, foreign investors returned to the market with the net buying of VND590 billion ($28.09 million) in September and VND896.2 billion ($42.6 million) from October 1 to 24.

According to technical analysis, the market has passed its bottom level. The VN-Index stood over the 470 points while the HNX – Index also stood higher than 57 points.

The report concluded that the recovery of the domestic economy and the possibility that the US would extend its QE3 package until the end of 2013 could boost stock market expectations by the year's end.— VNS

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