VN-Index to exceed 1,300 points next year: Dragon Capital

By Dat Nguyen   September 16, 2023 | 04:52 pm PT
VN-Index to exceed 1,300 points next year: Dragon Capital
An investor looks at stock prices on the screens at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The VN-Index might surge past 1,300 points next year thanks to soaring business profits, an analyst of investment fund Dragon Capital has forecast.

Listed companies might see their combined profits in the second half this year growing by 34% year-on-year, thanks to a low base, and for the whole year growth is pegged at up to 4%, said Le Anh Tuan, head of stocks at Dragon Capital.

But growth for 2024 could be up to 25%, he told a recent forum, adding that as the economy gradually recovers, so will the stock market.

"VN-Index therefore might exceed the expectations of many. If the majority expect it to be at 1,300 points, the actual level could be much higher."

Vietnam’s benchmark VN-Index has plunged from a historic peak of 1,500 points in April last year to around 900 points in November and is now hovering around 1,200 points.

Tuan said that several factors that will contribute to VN-Index’s recovery include declining interests and stable currency exchange rate, and the only thing that is missing is an improved profit margin among businesses.

But several risks remain, including the fact that foreign investors have been withdrawing from the market.

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