Stock market seen underpinned by macro developments in 2019 - expert
HCMC – Investors may find a slew of opportunities from domestic equities this year as the local macroeconomy is expected to maintain stability, said Tran Xuan Bach from the macro and market research department of Bao Viet Securities Company.
According to the expert, the market will see minor ups and downs this year, driven by factors such as emerging market status upgrade, State capital divestment, or the revised Securities Law.
Meanwhile, macro developments in the country are expected to stay neutral with little adverse impact on the stock market. Therefore, the VN-Index will be supported as many listed enterprises may continue posting up steady profits this year, Bach said in an interview with vietstock.vn.
However, Bach advised investors to pay attention to some overseas risks such as the public debt crisis in Italy, an economic slowdown in China and the U.S. Further, the U.S. Federal Reserve may continue hiking interest rates to a level that enterprises will find business expansion unattractive.
As short-term fluctuations are forecast, Bach said investors may find out better trading opportunities than last year. This year, the market will still be driven up by banking, property and petroleum sectors and a number of large caps such as VIC, VHM, HPG, VCB and TCB.
Many blue chips will promise profits for investors in 2019, but their gains may be lower than levels obtained last year. Besides, large caps are expected to attract foreign capital thanks to foreign ownership limits being raised alongside stock market status upgrade.
Meanwhile, mid cap stocks will see clear divergence, and their developments depend on the performance of each enterprise. Last, it is rather difficult to seek opportunities in small stocks.
“In general, I will look for stocks of enterprises with good fundamentals and the ability to maintain profit growths in 2019, or having prices dropping below their real values and reporting high liquidity,” Bach added.
Last Friday, the VN-Index of the Hochiminh Stock Exchange inched up by 0.49% to close at 902.71, slightly above the crucial psychological level of 900 points. Housing firm VHM, dairy enterprise VNM, budget airline VJC and retailer VRE contributed significantly to the gain of the index.
Trading value on the southern market increased by 7% from the previous day to reach VND2.8 trillion. For the whole week, the VN-Index rose by 2.48% to post the first weekly gain in the last five weeks.