Stock market set for steady growth

Stock market set for steady growth

The stock market would be on steady upward trend next year, but no strong surges were expected, according to a forecast by MB Securities (MBS).

An MBS report said that the Trans-Pacific Partnership (TPP) would stimulate the market, adding that it would encourage foreign speculative cash to flow in.

However, it also said there was little chance of the TPP being signed next year because agreement was not likely to be reached among members until the end of next year.

Still, the report added that the stock market would be an attractive investment channel when investors seeking opportunities.

It forecast that next year, benchmark indices would fluctuate about 6 per cent around this year's ranges.

This meant the VN-Index in the southern bourse and the HNX-Index in the northern bourse would fluctuate around 492 to 561 points and between 61 to 68 points, respectively.

The report said the market would go up steadily next year thanks to the recovery of the economy. However, no strong surges were expected unless there was stimulating information.

Expectations arising from the signing of the TPP would help boost shares, especially those in the garment and textile sectors and blue chips.

Joining TPP would help Viet Nam attract more foreign capital, from which financial markets and stock markets might both benefit.

According to the MBS report, there was a likelihood of achieving a gross domestic product (GDP) growth rate of 5.8 per cent, providing the country hastened its economic restructuring.

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