Add Stocks to the Market: Waiting for New Quality Items

Analysts say this attention comes not only from the businesses' own potential, but also reflects the "thirst" for new quality stocks in the context of indexes continuously setting new peaks.

Ideal time to go public

Average liquidity in July reached over 2.1 billion USD/session and continued to be maintained in August, even reaching 3 billion USD in one session. Abundant cash flow has made Vietnam the market with the highest liquidity in the ASEAN region.

Mr. Dang Tran Phuc, Chairman of the Board of Directors of AzFin VN Joint Stock Company, commented that this is a "golden" period for businesses to issue capital increases, IPOs, and list, because liquidity is abundant and stock prices are being supported at a high level, making the capital mobilization process more favorable.

According to Mr. Phuc, a major problem of the market in recent years is the lack of new supply. Therefore, any listing deal appearing at this time can become the center of attention, even "hotter" than the real intrinsic value of the business.

Mr. Nguyen Anh Khoa, director of analysis and research at Agribank Securities (Agriseco), commented that with low interest rates, cheap money is flowing strongly into the stock market, causing stock prices to rise.

This is an opportunity for businesses to IPO at a more favorable valuation and at the same time raise a large amount of capital.

The prospect of capital mobilization through the stock market will soon improve again when the economy maintains a high growth rate, many support policies are implemented and the demand for production and business expansion increases.

"Many businesses will need to prepare financial resources to expand capacity and accelerate investment, and in this context, the stock market will continue to be a key capital channel," said Mr. Khoa.

Mr. Le Duc Khanh, director of analysis at VPS Securities, said that the re-disbursement of foreign capital in July, after a long period of net selling, is a positive signal, reinforcing expectations that we will see many large-scale IPOs and equitizations in the near future, creating more quality "goods" for the stock market.

"This is the pivotal stage of a new cycle. If supported by a full legal corridor and the companionship of consulting organizations, there will be many private enterprises, from small to large scale, ready for IPO, helping Vietnamese securities have more quality products, meeting the diverse needs of both domestic and international investors," said Mr. Khanh.

But something is still "missing"

In the coming time, the Vietnamese stock market is expected to welcome a series of new stocks on HoSE, with notable names in the banking sector such as VAB (VietABank), VBB (Vietbank), BVB (BVBank) or industrial real estate such as NTC (Nam Tan Uyen), meeting the market's "hunger" for goods during the current period of explosive liquidity.

With plans being initiated by businesses, according to experts, there will be no more worries about the upcoming shortage of goods.

However, the market capitalization structure shows the dominance of the financial and real estate groups, accounting for nearly 60%, not to mention many large IPO deals in the last months of the year still coming from the financial sector.

According to Mr. Dang Tran Phuc, in developed markets, the capitalization picture is very different, with technology, industry, and consumer being the dominant groups, while finance - real estate usually only contributes 10 - 20%. Even in the ASEAN region, the proportion of finance - real estate rarely exceeds 30 - 40%.

"However, this structure also reflects quite accurately the characteristics of the Vietnamese economy - still relying heavily on traditional sectors," said Mr. Phuc, adding that Vietnamese stocks are lacking the presence of global trending industries such as semiconductors, artificial intelligence (AI) or other high-tech industries.

Mr. Truong Hien Phuong, senior director of KIS VN Securities Company, said that in order to supplement quality goods for the stock market, it is necessary to simultaneously implement many solutions to help businesses become truly "stronger" in both management capacity and competitiveness.

According to Mr. Phuong, the possibility of a technology "blockbuster" listing in the short term is very difficult, because even in the OTC market, there are almost no large-scale technology enterprises.

However, Mr. Phuong said that the market still has a lot of room to increase quality goods, through solutions such as promoting the divestment process at state-owned enterprises, as well as creating a mechanism for FDI enterprises to list on the stock exchange.