Vietnam’s benchmark equity index is poised to rally 12% by year-end as the lowest valuations in almost eight months lure investors and inflation slows, according to PXP Vietnam Asset Management.
“We have been buying undervalued stocks in the past week or so,” said Kevin Snowball, whose PXP Vietnam Fund Ltd has climbed 39% in dollar terms this year, versus 13% for the nation’s VN Index, data compiled by Bloomberg show.
The benchmark gauge will probably advance to about 530 by December, exceeding this year’s closing peak of 527.97 on June 7, according to Snowball, the chief executive officer at PXP. The gauge dropped 3.9% last month to 472.70, leaving it valued at 9.9 times projected 12-month earnings, the lowest level on a weekly basis since the start of January.
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