Securities investors found it easy to make money in the stock market in 2016, and they may have even bigger opportunities in 2017.
The VN Index reached 664.37 point threshold on December 23, 2016, which represented a 29.3 percent increase in comparison to earlier this year. The index exceeded a 9-year peak in 2016 with numerous opportunities for securities to make money.
Optimistic signs
Donald Trump will officially become the 45th US President on January 20, 2017. He wants to protect domestic production and is anti-trade liberalization. If the US President rejects the TPP, this will have an impact on Vietnamese enterprises in the fields of textiles & garments, seafood, footwear and logistics.
Securities investors found it easy to make money in the stock market in 2016, and they may have even bigger opportunities in 2017.
Analysts forecast that in the second half of 2017, the US FED would two times raise the prime interest rate, which means that the domestic market would not bear big effects in the first half.
Vietnam’s economy has been performing well recently, while the expected GDP growth rate in 2017 is 6.6 percent.
The target of obtaining stock market capitalization value of 70 percent of GDP by 2020 shows the government’s strong determination to turn the stock market into an important channel for businesses to mobilize capital.
Analysts say the P/E in the Vietnamese stock market is at low level, but the growth potential is great. With many enterprises with high capitalization value in the time to come, the expected profit increases and more favorable conditions to be set by the state, Vietnamese stocks are relatively cheap with numerous investment opportunities.
Investment opportunities
The VN Index has been increasing steadily since 2009 and the liquidity of the stock market has been increasing year after year. It is expected that the VN Index may reach the 700 point threshold in the first half of 2017.
The oil price recovery in the world is foreseeable as OPEC countries have agreed on the reduction of the exploitation output. The high demand from China and the appreciation of the US dollar will support prices of goods, especially crude oil. As such, the opportunities for oil & gas companies (GAS, PVD, PVS and PLC) will be great in 2017.
At present, oil & gas shares are being traded with a P/E of 9.6.
Analysts predict that the shares of FCMG manufacturing companies would see new breakthroughs.
The shares of the companies, including VNM, HNM, BHN and SAB, have been hunted on the stock market.
Many powerful enterprises plan to make IPOs in 2017. These include PV Oil, PV Power, VEAM (machinery), Vinatex (textile & garment) and Vietjet.