The strong gains will be supported by the governments efforts to boost money supply and credits to the economy by the end of this quarter, speed up state budget-funded projects, Hien said, expecting cash inflows into shares may also be stronger.
Vietnam stock market is likely to see a strong rebound in late September or early October with the benchmark VN-Index to hit 550-point level on expectation stronger cash inflows, Dinh The Hien, director of the Institute of Information and Business Research, said at a seminar held by FPT Securities last weekend.
Furthermore, lending interest rates may continue to sled to 12%-14% and deposit rates to 10% by end-September, which is more affordable for enterprises and investors.
The VN-Index, which touched the eight-month low at 448.4 on August 12, is likely to move in a narrow range of 450-500 this month, but then may peak at 550 by late September or early October, Hien sees, suggesting that investors should pessimistic and buy selective shares at this time instead.
However, Hien forecast the benchmark may fall to 480-520 at the years end as Vietnam will still face risks related to economic restructuring such as high state budget deficit and unsustainable development of the property market.
In the first seven months of 2010, total credits rose 12.97%, and money supply grew 12.96% from end-2009, compared to the full-year targets of 25% and 20%, respectively, said Governor Nguyen Van Giau of the State Bank of Vietnam, the countrys central bank.
Source: fpts.com.vn