HA NOI (VNS) — The stock market is poised to surge to record highs and outperform 2013, according to management officials.
This uptrend is due to the ongoing restructuring and new securities products, they said.
The economic growth of 2013 can be traced back to initiatives such as extending trading hours, deploying new indexes and increasing foreign investment.
All these strategies had a positive impact on the development of the stock market and this could be the reason why the economic landscape looks good this year.
"Restructuring the stock market is heading in the right direction, not by using administrative measures but by employing market-based solutions," said the State Securities Commission's (SSC) president Vu Bang.
With more economic policies in the pipeline and the increasing support for the stock market, the market was expected to be healthier and more vibrant than last year, he added.
The SSC will focus on completing two important projects in 2014: the development of derivative products and the merging of the two stock exchanges.
Another critical initiative that is geared towards attracting foreign investment and to helping the market in general is the proposal of lifting the limitation on foreign ownership. This will come into effect soon.
Tran Dac Sinh, chairman of the HCM City Stock Exchange, said he had held meetings with at least 10 foreign investors each month, including those with large investment funds.
"The investors expressed their desire to see an increase in the transaction value each day from US$500 million to $1 billion and to be able to use other tools such as exchange-traded funds and covered warrants," he said.
Sinh predicted a spate of opportunities in 2014. The VN30 Index rose more than 20 per cent last year. Some of the shares surged to 300 per cent.
"Investors can choose whichever stocks they think are profitable. I foresee consumer goods companies performing best," Sinh added. — VNS