Thursday,  Oct 18, 2018,02:06 (GMT+7) 0 0
Expert: Consumer goods, transport stocks to grow in 2018
Phuong Thao
Tuesday,  Jan 2, 2018,23:23 (GMT+7)

Expert: Consumer goods, transport stocks to grow in 2018

Phuong Thao

HCMC – The stock market is expected to soar to new highs in 2018 as many sectors such as consumer goods, transport, logistics and retail are seen posting positive results in the coming time.

Vu Quang Dong, CEO of Vietcombank Fund Management Company, said many sectors may develop strongly. For instance, the real estate sector will enjoy better growth as interest rates will stay low and large cities will still see large housing demand.

Besides, tourism and related sectors will become promising as the Government is focusing on tourism development, raising the tourism sector’s contribution to gross domestic product (GDP) from 6% in 2016 to 10% in 2020.

The banking sector has implemented a restructuring plan and lenders have been told to set up provision funds. The revised Law on Credit Institutions will also help improve the health of the banking system.

Therefore, banks many continue reporting positive gains in the coming time. However, different banks may get different outcomes depending on their restructuring processes and the new law, Dong said on news website vneconomy.vn.

Last, the crude oil price has stabilized, thus propping up supporting industries and manufacturers such as those of plastics and packaging, the expert added.

The VN-Index rose 0.77% last Friday, with the year 2017 ending on a high note. The market soared 48% to a 10-year high. The index made daily gains last week for a combined rise of 3.4%, its second weekly increase in a row and the best week in the last five.

According to Viet Capital Securities Company, this year’s surge was the largest as the index shot up 142% and was the second highest since the Hochiminh Stock Exchange debuted in 2001. Several large new listings, including those of retailer VRE, fuel distributor PLX, low-cost carrier VJC and bank VPB, helped send the market capitalization up to US$114 billion, up from less than US$10 billion in 2008.

Large-cap stocks performed well this year, led by dairy firm VNM, property firm VIC, gas group GAS and lender VCB. Banks, such as CTG, BID and MBB, had a strong year along with top consumer goods stocks like PNJ, MWG, FPT and DHG.

Turnover, however, slumped on both bourses, with matching volume averaging out at 150.4 million shares and 45.4 million shares per session on the HCMC and Hanoi markets, down 16.4% and 16% versus the previous week respectively.

Foreign investors net bought over VND1.7 trillion of shares, including VND1.68 trillion on the southern bourse and VND50.9 billion on the northern exchange.

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