Chủ đề: stock market

With central banks around the world introducing policies to control inflation, the period of “cheap money” to support the world economy has officially ended, with pressure now on Vietnam’s operating interest rates. The continuous increase in government bond yields, meanwhile, has indirectly caused P/E in the stock market to be re-evaluated at a lower level.

The stock market will continue to face many risks during May, but there are bright spots coming from the macro-economy, according to BSC Securities. The economy will recover, and inflation will remain under control. BSC recommends investing in stock groups with good fundamentals and attractive valuations amid the recent downtrend, such as banking, materials, and energy.

On April 29, the last trading session of the month, the market strongly surpassed the first T+3 round, rising 1.17 per cent or 15.81 points. April, however, was still the worst month in two years for the VN-Index, which lost 8.4 per cent of its value. The fact that stocks gained just as the market is to take a four-day break shows investor expectations that trading trends will continue into May.

Vietnam’s stock market set a new record in February, with 271,000 new accounts opened. As of the end of March, the number of individual investor accounts totaled nearly 5 million. Vietnam therefore reached a milestone of 5 per cent of its population joining the stock market.

On March 30, Deputy Prime Minister Le Minh Khai directed the implementation of measures to ensure the stock market operates stably, safely, smoothly, openly, transparently, and sustainably. It is also necessary to review mechanisms and policies and complete the legal framework relating to handling violations in the securities sector.

“Billion-dollar” investments were of huge interest to foreign investment funds in Vietnam’s stock market in 2021, but 2022 is a more difficult situation, with many funds facing losses, some heavy.

FTSE Russell is set to announce an update on Vietnam’s stock market classification, with an upgrade anticipated.

Vietnam’s stock market is booming in both quantity and quality, but foreign investors are forecast to continue to be net sellers in 2022, possibly selling up to $200 million. They could also net buy by $500 million, however, under a scenario of Vietnam’s GDP increasing 6.6 per cent next year.

The past two years was a tough time for Vietnam’s economy but its stock market was able to maintain growth momentum. It is expected to continue to grow in 2022 thanks to cooperation from all parties involved.

The securities sector grew significantly in 2021, proving that existing institutions in the stock market are suitable for the high and sustainable development of Vietnam’s economy.

VinaCapital report assesses potential of Vietnamese securities going into 2022.

The stock market has been less active than previously in the final transaction week of 2021. A sharp fall in liquidity may come from the limited use of margins and not many investors wanting to act “recklessly” at this time. Small bank stocks, however, increased.

Economic support packages for the near future are expected to be submitted to the National Assembly at an extra-ordinary session at the end of the month. Analysts, however, have said that a strong breakthrough in the stock market should not be expected based solely on these packages. Their purpose is not to inject more money but to find ways to bring money back into production and business.

The decline in blue-chips on Vietnam’s stock market continued on the morning of October 25, taking the VN30-Index down to below the reference point. The market remained positive, however, with many groups, especially oil, construction, and insurance, gaining ground, while pillar stocks pushed up the VN-Index.

According to FiinPro, gold and USD are no longer the prioritized investment channels for Vietnamese youngsters. Their money is primarily flowing into the stock market and is likely to remain there until next year.

According to the General Statistics Office, in the first eight months of this year, 85,500 enterprises in Vietnam had ceased operations. When done well, corporate bonds would offer salvation for the country’s economy in the context of banks being overloaded and outstanding credit representing 150 per cent of GDP. Corporate bonds are a risky investment channel when not strictly controlled, however, and could endanger the entire financial system given that many businesses are in debt while facing difficulties from Covid-19.

Most long-term forecasts indicate that the VN-Index could reach 1,400-1,450 points by the end of the year, from around 1,365 points now. Investors, however, still need to anticipate the following four risks: a prolonged outbreak of Covid-19 leading to lower-than-expected GDP growth, cash flow leaving securities for production and business, rising inflation, and falling profit growth.

Just over 100,000 new domestic individual stock market accounts were opened during July; the lowest in the last five months. The reason for the decline may be that individual investors no longer need to open new accounts at small securities companies.

Vietnam’s stock market remains in the accumulation phase and there may be some corrections. The short-term trend is still positive, so short-term investors will be able to take advantage of these corrections to increase their holdings and buy new stocks.

VnDirect has identified four factors that will drive demand in Vietnam’s residential real estate market in the second half of 2021 and into 2022.