Saigon Securities Inc staff gather information for their study on the local stock market for their best service to the investors in Ha Noi-based office.--VNS file photo

HA NOI (Biz Hub) — While investment channels, such as gold, real estate and banking, seem not particularly upbeat, securities companies in Viet Nam predict a better scenario for the stock market in 2014.

Different companies anticipate their own high score for the stock market in 2014 based upon their own analysis. As one of the leading securities in Viet Nam, Saigon Securities Inc(SSI) tells Biz Hub that with stable currency and inflation, expansionary fiscal policy, and active participation from foreign investors, VN-Index might close higher in 2014 than it did this year.

SSI's analyst predicts a net earning growth of 12 per cent in 2014 for the 60 companies they cover.

According to SSI's analysis, the local market will benefit from local factors, such as the Government's greater emphasis on sustainable growth, and the comprehensive restructuring of SOEs, the growing banking sector and the further integration into the global economy through the TPP, Vietnam-EU FTA.

SSI says the FDI sector continues to be the solid foundation in supporting GDP growth.

According to SSI's research team, a low interest rate environment is expected to persist in 2014. Further, the listed companies would continue to improve their IR activities, while domestic investors adopt a more fundamental investing approach.

SSI also welcomes the Government's policy of expanding room for foreign investors' ownership as an impetus for the entire market, as it attracts additional investment inflows and interest from institutional funds worldwide.

Nguyen Minh Tung, director of Eastspring Investments Viet Nam (ENF), told Cafef.vn on December 17 that it was time for investors to purchase stocks, as the local economy has escaped from the bottom.

Le Duc Khanh, investment strategy director of Maritime Bank Securities (MSBS), also told the local press that investors should continue to spend on shares of infrastructure, shipping, electricity, textiles, garments and consumer goods, because they pay better attention to basic characteristics, than to risky shares. —VNS