Securities at the end of 2016: More opportunities, less risks

	Pace of equitisation fails to meet the target
	Vietnam stock market sees sharp rise in foreign investor number
	VN stocks may slide further on Brexit worry

Transaction at Maybank KimEng Securities Company

In the second quarter of 2016, along with the recovery of oil price and basic commodities, the delay of an increase in interest rate by the FED has helped world stock markets continue to increase prices. Nevertheless, Brexit happening at the end of June caused a big fluctuation and pulled stock markets index to fall down. In the MSCI stock index group, only MSCI in emerging countries still remained an increase of 1.4% compared to the beginning of the year, while global stock index and the marginal market decreased 3.8% and 3.7% respectively. In this context, Vietnam's stock market remains positive compared to the regional market and the world market. The interventions of the State Bank in cutting interest rates to support growth of businesses transfer the cash flow into the stock market quite stably. The stock market also attracted the capital flow P-notes (Participatory Notes is a type of investment certificates) to make up for the withdrawals from the ETFs, and convertible bonds VIC. Although Brexit has put a heavy blow on Vietnam's stock market in the session of June 24, but in the last week of June 2016, the stock market quickly recovered and gained strongly. At the end of the second quarter of 2016, the VN-Index and HNX-Index increased 13.2% and 8% respectively and 10.3% and 34.9% in transaction value over the first quarter of 2016.

Evolution of stock market growth has been greatly contributed by foreign investors. Although order turnaround underwent a sudden mutation in VIC, more than 2,800 billion, mainly derived from convertible bonds of this business, but if considered matched transactions in the stock market separately, foreign investors bought more than VND 2,600 billion. Besides attractiveness of Vietnam's stock market with the relatively low stocks price and stable economic growth, the motivation of foreign net-buyers also came from good recovery of world oil prices as well as changes in volume of global stock market in general. In addition, the opening of room in some large companies such as SSI, VNM and MBB as the latest along with the prospect of many other enterprises have also increased the attractiveness of Vietnam's stock market to foreign investors. Regarding matched transactions in two stock markets, there was a strong net buying of financial sector (VND 1,911 billion), oil and petroleum (VND 726 billion) and industry (VND 388 billion), while net selling of basic materials sectors accounted for VND 263 billion, consumer services with VND 109 billion and real estate with VND 81 billion .

In the first days of third quarter of 2016, there was an important breakthrough, with VN-Index successfully surpassing the strong resistance area of ​​640 points, creating the highest peak of this indicator from 2009. The session ended last week on July 15 with VN-Index closing at 664.56 points. The reports of analysis of securities firms have shown that VN-Index will reach 700 points this year. However, in the short term, the market will undergo a period of consolidation and the adjustment is not deep before rising again.

State Securities Commission urged to attract more foreign investors State Securities Commission (SSC) should create all favourable conditions for enterprises and investors, particularly attracting the extensive ...

The experts of Bao Viet Securities Company also provided a positive outlook on the stock market in the medium term as the market is still supported by a number of factors such as a stable recovery trend in production activities of the majority of businesses and the stimulus of central banks of countries in the actual implementation of products and new trading mechanism of the two transaction centres.