Shares become hot for various reasons. First, business fields have bottomed out and have begun the recovery process. This happened with cement in 2014 and steel in 2016. 

The steel industry experienced two difficult years in 2014 and 2015 when the oil price fell dramatically. In 2014, cement prices recovered thanks to the warming up of the real estate market. In 2016, steel prices also became strong after the recovery of the world’s goods market.

Cement as well as oil and gas shares were popular in 2014, bank shares in 2015, and steel shares in 2016.

In late 2016, the market saw the recovery of rubber shares as the price increased again. This also happened with coal shares. However, such increases did not last a long time.

The recovery of oil prices in early 2016 made investors hope that the oil and gas prices would bounce back to the height of three years ago. However, oil & gas share prices in 2014, compared to a ‘tsunami’, still have a long way to go. 

Second, investors may be pinning their hopes on ‘veteran shares’. Since late 2016, much attention has been paid to two of them – REE (refrigeration enterprise) and FPT (information technology group). 

There is also another candidate – securities shares. They were quiet throughout 2016 but now remain an unknown.

Third, investors will look for shares with attractive prices. Some cement shares were popular when the market price was lower than face value. This also occurred with steel shares. Real estate shares could be a choice.

The 2016 real estate market was active, but selling of shares was not that brisk. DIG shares are now being traded at VND7,700 and hundreds of thousands of shares are traded in each trading session.

DXG was another example. The price of the share increased from VND11,500 to VND14,000 but later fell again and is being traded at VND12,300. 

It is still unclear whether real estate shares about the real estate market are different.

Analysts say it is difficult to predict which shares will be the hottest. Signs can be seen clearly only when the share price has increased by 50 percent. And the most unpredictable factor is the ‘taste’ of the market.

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Thanh Lich