Stock Market Overdue A Correction

January 2007 | Market Strategy

The Viet Nam Index (VNI) closed at a fresh record-high of 1,040.70 on January 23, taking gains in 2007 to a remarkable 38.4%. Added to the 144.5% rise in 2006, the index has more than tripled in value since the start of last year, inevitably begging the question of whether these gains are sustainable. We think the index is overdue a correction, given the steepness of the rally, and the fact that it is now one of the most expensive in Asia on a price/earnings basis. However, over the longer term, we continue to believe that the market has good

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