The Vietnamese stock market is vibrant, with the VN-Index surpassing 1,500 points. Stocks of securities companies like VIX, SHS, and SSI have surged significantly, with VIX up 62%, SHS 35%, and SSI 30%. Stock valuations have changed, with an average P/B ratio of 2 and an average P/E ratio of 22, which are not very attractive but feasible. There’s a clear disparity between companies: SSI (P/B 2.3), HCM (2.7), and VCI (2.4) have higher valuations, while VIX (1.8), SHS (1.4), and VND (1.5) are lower. Despite its high valuation, SSI has advantages in market share and scale. Lower-valued companies often face market share issues and ineffective investments. Overall, while securities stocks hold potential, investors should consider the benefits and inherent risks. Vietnam’s potential upgrade to a second-tier emerging market by FTSE Russell could attract billions in foreign capital, stimulating stock market growth.
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