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Peter Pham
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Hello. I am Peter Pham, and is my creation. As a former proprietary trader with expertise in institutional sales and trading based in Vietnam, my approach is to mix quantitative trading techniques and fundamental analysis to provide a unique view of the changes taking place in the... More
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Peter Pham Presents: The Pursuit of Alpha in Asia
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The Big Trade: Simple Strategies for Maximum Market Returns
  • Diminishing Returns on Vietnamese Equities 0 comments
    Dec 27, 2010 12:28 AM | about stocks: VNM

    If we examine the history of the VN Index, we find that, excluding stock splits, the highest price ever for a stock was 295,134 VND for BMC.VN on 10/17/07. Hence, we can use 295,134 VND as a precedent for stock prices in Vietnam especially in a range bound market. Relative to other markets where price ranges for stocks are significantly wider we find that stocks trading above 80,000 VND in price are quite rare. Below, we examine the number of stocks since 2006 that have been various price ranges. 

    Price Range (VND) # 2006 2007 2008 2009 2010
    300,000 - 200,000 6   6      
    199,999-100000 31 1 23 1 3 3
    99999-90000 11   4 2 4 1
    89999-80000 14   6   1 7


    ETF investors into Vietnamese products, should also note the potential range bound nature and exhaustion Vietnamese equities experience on highs.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: VNM
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