Thursday, November 14, 2019 5:14:23 AM - Markets open
VN-INDEX 1,012.77 -5.56/-0.55%
HNX-INDEX 107.20 +0.23/+0.22%
UPCOM-INDEX 56.82 +0.01/+0.02%
VN stocks expected to decline, hopes rest on banks
Vietnam News - 5/13/2019 11:08:21 AM
 (0 ratings. You must sign in to rate.)
Vietnamese shares may continue declining this week, dragged down by the impact of recent US-China trade talks and a lack of corporate news, analysts said.
 
The benchmark VN-Index on the Hồ Chí Minh Stock Exchange ended last week at 952.55 points, for a total weekly loss of 2.22 per cent.
 
The HNX-Index on the Hà Nội Stock Exchange fell 0.94 per cent last week to end at 105.86 points.
 
The VN-Index and HNX-Index have lost a total 2.76 per cent and 1.49 per cent so far in May, respectively.
 
The Vietnamese stock market experienced strong pressure from international markets last week as investors displayed their concern about the escalation of the US-China trade tensions.
 
The US on Friday raised tariffs on US$200 billion worth of Chinese goods to 25 per cent from 10 per cent.
 
Despite positive progress made by the world’s two largest economies in last week's talks, US President Donald Trump said he would impose higher tariffs on all Chinese goods if the two sides could not reach a deal within one month.
 
That threat may rattle global financial markets over the next month, and Vietnamese shares are no exception.
 
The Vietnamese stock market needs some time to calm down, especially as local firms are not supplying corporate news and international markets are highly risky, said Trần Đức Anh, head of macro-economics and market strategy at KB Vietnam Securities.
 
“Friday’s gain was more like a technical rebound that followed the market’s previous shocking declines,” he told tinnhanhchungkhoan.vn.
 
“The market will need to fall and settle at a lower level so that potential risks are fully priced in before making a recovery,” Anh said.
 
Speaking about the trade war between China and the US, Anh said there are two main impacts on the Vietnamese economy and equity market.
 
The first is the pressure on Việt Nam’s exchange rate, he said. The US dollar will get stronger while the Chinese yuan weakens, so the central bank will bear double pressure in controlling the Vietnamese đồng against the two currencies.
 
“Every time the Vietnamese đồng weakens against the dollar, foreign investors net-sell their local assets and pressurise the equity market,” Anh said.
 
Foreign investors net-sold a total of VNĐ522 billion ($22.3 million) worth of Vietnamese shares last week (May 6-10). They net-bought a total of VNĐ171 billion ($7.3 million) between April 22 and May 3.
 
The trade war will also re-direct global trade, having an unpredictable impact on the Vietnamese economy and equity market in the long run, Anh said.
 
“It may deter global economic growth, pull down Việt Nam’s export and hurt the operation of the Vietnamese firms that are in the value chain set up by Chinese and US companies,” he added.
 
According to securities firms, the trade tensions have dampened investors’ confidence in the market and brought down trading liquidity to a very low level.
 
Trading volume through order-matching transactions reached an average of 148 million shares in each session.
 
Investors are waiting for more positive information of the stock market before buying in stocks again, Sài Gòn-Hà Nội Securities JSC (SHS) said in its weekly report.
 
“In my view, the cautious stance would still be the main attitude toward the stock market in the coming week,” Anh from KB Vietnam Securities said.
 
Friday's modest gain does not mean all bad news has been overcome and the market will simply bounce back, said Hoàng Thạch Lân, head of the individual investor department at Việt Dragon Securities.
 
“My technical indicators remain negative and the market will likely continue its downturn,” Lân said.
 
 
Bank and petroleum stocks are expected to cushion the stock market in the short term, analysts said.
 
“The banking sector is one of a few industries that showed earnings growth in their Q1 financial reports,” Anh said. “Shares of large-cap banks should be eyed now for the good quality of assets and performance in the next quarters.”
 
Energy stocks have been boosted by the rise of oil prices since the beginning of the year. However, they should not be a target for the short term as oil prices are likely to fall soon, Anh added.
 
Analyst Vũ Minh Đức of Việt Capital Securities Corp’s research and analysis department said energy stocks are now slightly overvalued while bank shares have become attractive following their recent downturns. — VNS
 
 
Read original article here
 
Newer News
13/11 Markets climb with divergence among large-caps
12/11 Profit-taking sends stocks down
11/11 VN-Index to move flat, large-cap stocks to weaken
10/11 85% of businesses listed on stock market report profit growth in Q3
09/11 VN-Index slides for second day
09/11 85% of businesses listed on stock market report profit growth in Q3
08/11 VN-Index steps down from 4-day rally
07/11 Stock market inches up, investors begin earning profits
02/11 Shares surge, VN-index hits one-year peak
01/11 Profit-taking send stocks down
Older News
13/05 Securities trading codes issued for more than 350 foreign investors in April
10/05 Derivatives market sees liquidity slump in April
09/05 VN stocks expand losses for 5th day
08/05 Stock market sees positive growth in Q1
06/05 VN stocks plummet, insurance stocks hit hard
04/05 Purchases dominate foreign investors’ transactions on UPCoM in April
02/05 VN stocks may go sideways in post-holiday trading
01/05 Forestry exports on the rise
26/04 VN stocks decline from a two-day rally
24/04 VN stocks up on weak bottom-fishing purchases
 
Newsletter Signup
Top Stories
Reference exchange rate unchanged on November 13
VN-Index slides for second day
Reference exchange rate reverses downward trend on October 23
Prices of Grade A office space rise due to low supply
VN stocks to beat 1,000 points in Q4
Market Update
Last updated at 3:10:03 PM
VN-INDEX 1,012.77 -5.56/-0.55%
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...
Portfolio
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.