The stock market needs time to recover

	Stock market capitalization is equivalent to 77.7% of GDP
	Taking many measures to encourage enterprises to list on the stock market
	Stock market targets safe growth

Mr. Bernard Lapointe.

After several increasing sessions, Vn-Index was close to the MA200, but then it was under pressure and reduced to below 1000 points, especially on October 11^th, 2018, what do you think about this movement?

The reaction of the stock market over the recent trading sessions is a combination of many factors, but concern about trade war only plays a small part. The main reason is originating from the US market when the market has gone up for nine consecutive years. Currently bond interest rates are rising higher than stock returns. It leads to investors turning to buy bonds, or at least selling stocks and keeping cash to avoid risks. Vietnam’s market is also affected by the general trend of the world market.

It can be said, the stock market has abnormal movements, annoying many investors. Thus, do you have any recommendations to investors, sir?

The important thing that the investors should keep in their minds is that the market does not recover immediately in a V shape but will take time.

He also affirmed that Vietnam’s market is likely to be stable again (possibly falling slightly or moving stably). Our target for the VN-Index is still around 960-1040. We believe that October and November will be a good time of disbursement to take advantage of the opportunity.

Do you think that business results in the third quarter will be enough to help the market reduce negativity and recover, sir?

Vietnam's market often reacts strongly to the business results of the enterprises. A positive result will support the market a lot. However, the results of the banking group showed that the business results has reached the peak in the first half of this year.

What are your recommendations on commodity groups for investors?

Real estate group in industrial zones and seaports will benefit from increased FDI inflows. Garments and textiles, despite having sharply increased recently due to the impact of the trade war, they still can increase thanks to upcoming free trade agreements which will be signed (EVFTA - may be signed in October, 2018)

In addition, IT stocks will also benefit from the digital conversion trend of domestic enterprises and increase the outsourcing cost in the IT sector in developed countries.

Decoding recent transactions of foreign investors on the stock market VCN- The continuous net sale of foreigners is believed to be the reason for the negative impact ...

However, the sector’s good prospects do not mean that any stock in that sector can be invested. Investors still need to consider the valuation of each stock.

Thank you Sir!