Stock is the best investment option in 2012, said Michael Kokalari, head of research department with Kim Eng Securities told local news provide Dien Dan Doanh Nghiep.

Michael Kokalari said he is optimistic because Vietnam is one of the fastest growth economies in Asia with the emerge of middle-class; the up-move in valuation of export items such as electronics, and the development of infrastructure. Stock prices will finally reflected economic situation, he said.

The analyst said Vietnam has higher inflation than other Asian countries, therefore, when inflation eased, interest rates will fall faster and boost stock prices much higher. If Vietnam could step by step implement banking restructuring, it will be able to attract foreign investors , he said, adding that he expected things will be clearer in 2013.

Michael sees the risk for the scenario that inflation ease will lead to lower interest rates and stock market rally is hard landing of Chinese economy while he does not concern much on EU problems.

In his opinion, when inflation falls under 15% it is the signal to peak up shares. The other signals included: VNIndex and HNX index formed bottom clearly in charts, lower inflation.

The analyst recommends investors to focus on consumer goods aiming at middle-class people as they will continue to spend when Vietnam continue to grow and focus on low P/E shares with high growth rates.

Source Scarlet D./ StoxPlus