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Stock market to jump up in first half of 2011, experts predict

In Uncategorized on January 8, 2011 at 4:26 am

Vietnam’s stock market will roar back in the first half of the year on the US’s bullish market, financial experts expect.

(Photo:Minh Tri)

The stock market in Vietnam last year were effected by many macroeconomic factors, while nearby markets including Singapore, Indonesia and Thailand were boosted by the US’s financial bailouts, said M.A. Le Dat Chi, head of the financial investment faculty of the University of Economics Ho Chi Minh City.


“A part of the US$600 billion bailout of the US flew into Asian markets, especially emerging ones. It was just a small proportion for the US market, but it did make big impact to emerging markets, except of Vietnam,” Tri said.


Only investors holding control stake in listed enterprises made profits from dividends as the VN-Index dropped to 430 points in the last quarter of last year, with many shares slumping to incredible levels, he said.


“Vietnam’s stock market is at the bottom, with the ratio of dividends per share equal to 15 percent. This rate is extremely attractive to some investment funds,” the economist said.


“Besides, investors’ confidence in a successful Eleventh Party Congress with new members elected into the central committee will boost the market sentiment. Foreign investments will flow stronger into the stock market, which hit the bottom. Therefore, the market will likely to roar back in 2011.”


Statistics showed nearly the foreign indirect investments (FII) pour into the stock market last year reached $1 billion. Stabilizing the foreign exchange rate should be the top priority this year to attract more FII, Tri noticed.


The financial expert also recommended that more adequate taxes on shares will attract more foreign investors.


“Instead of asking foreigners either to pay security before entering the market or not to sell shares in at least one year, we can impose taxes on the dividend from their share investments,” he suggested


Stock market analysts also predict the market will likely to recover strongly in the first half of the year on the increase of the US market.


“The US dollar getting weaker in the first half of 2011 will be good news for the country’s stock market. However, it will be stronger again in the last half. The market’s winning run will likely to last until June, with Dow Jones Index climbing 12,600 points,”  Tri said.


Statistics showed the stock market usually climbs up in March, April and December every year.


However, the market is still carrying some risks including the US dollar getting stronger constantly, warned Pham Xuan Anh, deputy head of the brokerage BIDV-BSC’s market analysis unit.


“Standard Chartered Bank expected the foreign exchange of Vietnam dong and dollar will reach VND20,800 per dollar at the end of the year, a year-on-year increase of around 6.6 percent,” said Tri.


“The Asia Development Bank last September predicted Vietnam’s inflation in 2010 would rise to 7.5 percent, caused by a weakening dong and an increase in food prices.”


Low foreign currency reserve and large amounts of dollar and gold owned by residents would put the central bank in difficult time, Tri added.

Source: SGGP

N.Korea says ‘no-one can predict consequences’ of US drill

In Uncategorized on November 27, 2010 at 1:50 pm

Democratic People’s Republic of Korea state media warned on Saturday that “no-one can predict the ensuing consequences” if a US carrier group goes ahead with a planned drill with the Republic of Korea (RoK) in the Yellow Sea.

North Korean leader Kim Jong-il (C) visits the newly-built Soy Sauce Shop at the Ryongsong Foodstuff Factory in North Korea in this undated picture released by North Korea’s official KCNA news agency on November 24, 2010

The Korean Central News Agency (KCNA) statement came days after the hardline communist regime sharply heightened regional tensions with an artillery attack that killed two marines and two civilians on a RoK border island.


The nuclear-powered aircraft carrier the USS George Washington and its battle group plans four days of exercises from Sunday with a flotilla of RoK warships in a show of force meant to deter Pyongyang.


The KCNA report labelled the United States “the arch-criminal who orchestrated the recent military clash”, in which RoK on Tuesday returned artillery fire at the North.


The report repeated Pyongyang’s claim that it attacked in response to RoK conducting a military exercise that lobbed shells into waters that the North regime regards as its own.


The KCNA report argued that its own “counter-shelling” was “a resolute and proper retaliation against the reckless military provocation of the enemy”, and argued that the US was then quick to take advantage of the clash.


“No sooner had the Yeonpyeong incident occurred than the US announced that it would stage joint naval exercises with the RoK puppet forces with nuclear-powered carrier George Washington,” the report said.


It went on to warn: “If the US brings its carrier to the West Sea of Korea at last, no one can predict the ensuing consequences”, using the Korean term for the Yellow Sea.


KCNA also said two civilian deaths from its artillery strike on the South were “if true… very regrettable” but also charged they had been used as “human shields” by being placed near artillery positions.



 

Source: SGGP