Wednesday, May 27, 2020 3:15:49 AM - Markets open
VN-INDEX 869.13 +10.09/+1.17%
HNX-INDEX 110.49 +1.35/+1.23%
UPCOM-INDEX 55.33 +0.39/+0.71%
Corporate earnings could boost market morale
Vietnam News - 10/22/2018 2:07:35 PM
 (0 ratings. You must sign in to rate.)
As worries grow about additional US rate hikes, investors may now turn to the earnings season in which they hope to find something extraordinary to drive overall sentiment up.– VNA/VNS Photo
HÀ NỘI – As worries grow about additional US rate hikes, investors may now turn to the earnings season in which they hope to find something extraordinary to drive overall sentiment up.
On Friday, some Fed officials revealed the bank’s plan to raise interest rates two or three more times by June 2019 so lending costs would touch the neutral territory, allowing the Fed to stay out of the way the economy runs.
That, in the short run, would calm investors as they are now aware of the Fed’s plan, but in the long run it may result in an outflow of foreign capital from emerging markets, including Viet Nam.
Worries over the US central bank’s rate hike scenario were among the key factors that dampened local market sentiment last week.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HOSE) was down 0.53 per cent on Friday to finish last week at 958.36 points, totalling a weekly loss of 1.2 per cent.
The minor HNX Index on the Hà Nội Stock Exchange rose 0.17 per cent on the same day to end the week at 108.10 points, marking a weekly decline of 1.51 per cent.
An average of more than 187.4 million shares were traded in each of the five sessions last week, worth VNĐ4.1 trillion (US$181.6 million).
Foreign investors posted VNĐ270.8 billion in net sales. Last week’s figure was down 48 per cent from the previous week’s VNĐ500 billion.
Investors are now likely to shift focus to corporate earnings reports for the third quarter for some news powerful enough to boost market morale.
"Third-quarter and three-quarters earnings results and forecasts from listed companies will support the market," Bảo Việt Securities JSC (BVSC) said in its weekly wrapup note.
The centre of attention will be listed companies that often produce good earnings reports, have high quality of corporate governance and do well in information disclosure.
The largest listed firms by market value are expected to release higher-than-expected earnings reports and have good impacts on market sentiment.
Some listed firms that have already announced impressive nine-month earnings are Military Bank (MBBank), PetroVietnam Gas Corporation (PV Gas), Saigon Securities Inc (SSI) and Phú Nhuận Jewellery JSC (PNJ).
The first three companies posted more than 50 per cent yearly increases in their post-tax profit in the first three quarters of 2018, while PNJ showed its nine-month post-tax profit gained 38 per cent year-on-year.
MBBank recorded VNĐ4.8 trillion in nine-month post-tax profit. The figures for PV Gas, SSI and PNJ were VNĐ9 trillion, VNĐ1.16 trillion and VNĐ694.4 billion.
Other large-cap listed companies such as Vietcombank, dairy producer Vinamilk, food and beverage firm Masan, and property developer Vingroup have yet to release third-quarter and nine-month earnings data.
"However, corporate earnings are often differentiated among and within sectors, so earnings should not be a factor to count on at the moment for strong market growth," Sài Gòn-Hà Nội Securities JSC (SHS) said in a note.
"Technically, the market is trading in a neutral range so there is little chance for a sharp decline or a strong increase in the coming week," SHS said.
"The benchmark VN-Index may experience volatility and test the wide range of between 930 and 990 points," SHS added.
Some factors that may damage market sentiment include the slowdown of the Chinese economy and trade tensions between China and the US. – VNS

Read original article here

Newer News
14/05 VN stocks slide, but market prospects remain positive
07/05 Large-caps maintain uptrend, markets extend gains in the afternoon
05/05 Markets tumble as global sentiment worsens
29/04 Plummeting stock prices raise fears of businesses being acquired
28/04 VN stocks pulled down by profit-taking
21/04 VN-Index gains for sixth straight session
17/04 VN shares struggle to stay positive
16/04 Vietnamese stocks rise for third day
15/04 Shares swing as profit-taking gets stronger
14/04 ETFs sell net $283 million in ASEAN in Q1: VNDS
Older News
13/10 Viet Nam shares recover after sharp global falls
09/10 VN-Index breaks 1,000 point level again
04/10 Reference exchange rate continues to rise
04/10 Hanoi Stock Exchange hosts 27 auctions in nine months
03/10 VN Index rebounds with high liquidity
01/10 Shares likely maintain uptrend
28/09 FTSE Russell adds VN to reclassification watchlist
27/09 VN-Index sink for a second day
25/09 Reference exchange rate up 6 VND
25/09 VN-Index continues upward trend
Newsletter Signup
Top Stories
Reference exchange rate down 5 VND on March 26
Reference exchange rate up 5 VND on March 18
Shares tumble over WHO declaration of COVID-19 pandemic
Tight co-ordination needed to ensure EVFTA benefits
VN shares mixed, but growth expected to return
Market Update
Last updated at 3:10:03 PM
VN-INDEX 869.13 +10.09/+1.17%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.