Report

Analyst Pin-board VN Index is expected to range from 1,340 to 1,730 in 2022

  • In 2021, VN Index ended at 1,498 points with 36% return thanks to the strong participation of retail investors, accounting for 85% of liquidity. The money rotation was key trend when banking stocks drove the market in 1H 2021 while real estate stocks kicked off market mood in last three months of 2021. Strong money flows from retail investors shed the light for VN Small stocks.
  • In 2022F, we expect the VN Index  to range from 1,340 to 1,730, according to Rong Viet’s  scenario of a 17% EPS growth in 2022 (representing 41% of total market capitalization) and a forward PE of 16.4 times. The high profitability of the stock market in 2020-2021 has attracted the attention of a large number of individual Vietnamese investors. We think this will continue in 2022. An average of 150,000 new trading accounts are opened monthly. The average order-matching liquidity of the whole market could be at VND 35,000 billion/session (+36% YoY).
  • The market may be more "sensitive" and volatile to negative information, especially as  valuations have reached a much higher level than in the period before the first outbreak of Covid. We believe that there are risk factors to keep in mind: 1- the probability of infection with vaccine-resistant strains of the virus could increase the uncertainty of the economic recovery; 2- The fluctuations in global geopolitics; and 3- the impact of global contractionary monetary policies which could affect sentiment.

 

Provider
Viet Dragon Securities
Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts
Son Tran

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