SSI upbeat on market

Vietnam’s largest securities firm Saigon Securities Inc. has an optimistic view of the market despite the high P/E ratio of many shares.

A report by its research and investment advisory department said the P/E ratio was just one of factors influencing the market besides others like economic prospects.

SSI pointed to several positive factors like robust economic growth with a GDP target of 8.2 to 8.5 percent this year, a stable regulatory framework, and improving management of the stock market.

Vietnam’s 20 largest companies remained attractive to the market and many of them, like FPT, VNM, STB, ACB, PVD, REE, and VSH, had raised easily capital from the market in 2006 and 2007.

Both sales and net earnings growth of these firms averaged above 56 percent while net margins in 2007 remained significant at 26.02 percent.

Source: Thanh Nien