boiman
23-05-2009, 11:52 AM
The market has been benefiting from increased liquidity in the last couple of weeks as a result of returning interest in Vietnamese shares.
The drop we saw in 2008 and the early part of the year has made Vietnamese shares cheaper, which has helped fuel the return of interest in the market.
Some Vietnamese companies have also been more proactive in disclosing information and increasing transparency, allowing investors to increase their understanding and conviction in some of the companies that they have invested in.
It is no secret that the market has moved higher in terms of valuations given the recent runup. Our view is that the sustainability of the market’s rally should be determined by the fundamentals of the stocks themselves.
Should we see more companies upgrading or becoming more bullish on their respective earnings outlook going forward, then that should indicate that the market’s renewed strength should be sustainable.
Mark Canizares, head of equities at Ho Chi Minh City-based Manulife Vietnam Fund Management
The drop we saw in 2008 and the early part of the year has made Vietnamese shares cheaper, which has helped fuel the return of interest in the market.
Some Vietnamese companies have also been more proactive in disclosing information and increasing transparency, allowing investors to increase their understanding and conviction in some of the companies that they have invested in.
It is no secret that the market has moved higher in terms of valuations given the recent runup. Our view is that the sustainability of the market’s rally should be determined by the fundamentals of the stocks themselves.
Should we see more companies upgrading or becoming more bullish on their respective earnings outlook going forward, then that should indicate that the market’s renewed strength should be sustainable.
Mark Canizares, head of equities at Ho Chi Minh City-based Manulife Vietnam Fund Management