Banking sector is set to post a strong growth of 21-28% year-on-year in pre-tax profit in 2021, subsequently leading to higher value of banks stocks.

The Vietnamese stock market is forecast to prosper after the Tet (Lunar New Year) holiday in accordance with the strong growth of stock markets around the world, analysts said.

Brokerages have forecast Viet Nam’s stock market to prosper in 2021 while being influenced by the speed of economic recovery and the development of COVID-19 pandemic globally.

Despite broad-based sell-offs eroding the market in the first half of 2020, optimism about potential vaccines and low interest rates have pushed the domestic stock market to record heights. Bach An Vien and Bui Ngoc Chau, analysts at Mirae Asset Securities, write about the appeal of Vietnam’s equity market and the forecast for 2021.

After a period of hot growth and extensive cash flows in all markets, the drastic correction in mid-January will force stock investors to become more prudent if they are not to lose all the earnings from the recent strong rally.

 Viet Nam's stock market finished low on Monday before halting for Tet holidays.

Nearly 86,270 securities trading accounts were opened by domestic investors in January, an increase of 36.4 per cent from the previous month, according to the Viet Nam Securities Depository (VSD).

Cement, petroleum and retail stocks are those that could see strong rises in 2021.

Shares opened a new week on a negative note with all sectors falling deeply.