Stock Market Sees Short-Term Rebound

Le Tham Duong, Department Head of Business and Administration at HCM City Banking University, said that the upswing can be attributed to two main things. First, the expected rise in inflation is less than 0.1% and second, other forms of investment, such as gold and foreign currency, are losing ground.

But perhaps the brightest spot on Duong’s outlook was the increase of the number of businesses showing growth in the first part of the year.

A leader of Hoang Gia Securities Company said the cash flow of late April and early May is forecasted to stay in the market, not move to other investment channels. Even the speculative investors are also buying and selling within the market.

In April, many stock prices have surged such as real estate, steel and fuel shares. With a right choice, investors can earn as much as 40% profit.

Dao Hong Duong, an analyst of Petrol Vietnam Securities Incorporated said that the Government’s fiscal policies have acted something like a stimulus package. “I think the market may get a strong boost in late April or early May because of stronger confidence in securities,” he said.

At the moment, the market is attracting more investment from individuals than from firms or investment companies. There have been a number of reputable investors who have said publicly that people have been making reckless trades on the margin since last April, partially because of bank’s credit policies.

While the stock market is seeing at least a temporary resurgence, other channels of investment are slower to make a rebound.

Pham Kinh Luan, veteran stock trader predicted that, in the future, the pharmaceutical and medical industries will see strong growth, attracting both foreign and domestic investors.