Vietnam stock market to bottom out in late 2009, continued VN Index slide to 200 possible

VietNamNet Bridge, Feb 28, 2009. While stock investors look for a glimmer of hope, analysts believe the domestic equity market will bottom out this year.

Ken Tai Chee Ming, Singapore-based Kim Eng Securities’ senior technical strategist, said the VN Index was likely to continue dropping.

Ming said Vietnamese share prices were more expensive than Hong Kong, Indonesia, Singapore and Thailand but cheaper than Malaysia, mainland China, India, Japan, Korea and Taiwan. The Vietnamese dong was expected to depreciate further as efforts to boast exports were not good for the equities market in the short to mid-term.

“Global markets may bottom in the fourth quarter of 2009 and we should expect the VN Index to bottom out this year too,” Ming told Kim Eng Securities Vietnam investors at a talk show last week, adding that investors could consider jumping into the market in October. The VN Index on February 20 closed at 252.57 points, the lowest level in three years and technical analysts said the scope for the market to slide towards 200 points was possible.

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