Tuesday, March 19, 2024 11:00:44 AM - Markets open
VN-INDEX 1,242.56 -1.00/-0.08%
HNX-INDEX 237.17 +0.49/+0.21%
UPCOM-INDEX 90.52 +0.20/+0.22%
Stock, real estate markets to become more attractive thanks to low interest rates
Vietnam News - 6/3/2023 2:26:27 PM
 (0 ratings. You must sign in to rate.)

 Cash flow always looks to more attractive investment channels with higher returns, so when interest rates decrease, cash flow will shift from the savings channel to the stock and real estate markets, according to experts.

According to Huỳnh Minh Tuấn, Investment Director at Mirae Asset Securities & Investments Company, when interest rates are low, savers will begin to consider and shift their asset allocation. Cash flow is always "smart money" and always looks for more attractive investments with higher returns.

The money can move from the savings channel to other investment markets, such as real estate and stock markets, but there will be a delay. It may be a few months late for the real estate channel, but for the stock channel, it will be faster, maybe from next month, Tuấn said.

The activity of transferring savings books has also flourished recently. There was a firm that last weekend announced to buy back 1,500 billion bonds but only bought back 600 bonds. That shows that investors want to keep high-yielding assets while deposit interest rates fall deeply. The interest rate on this bond is 10.5 per cent, which is 30 per cent higher than current savings rates.

According to Tuấn, some industries will benefit from the interest rate reduction trend.

With the stock market, statistics in the past showed stocks increased when interest rates were lower. In particular, capital-intensive industries such as real estate, securities, banking, and construction materials will benefit, Tuấn said.

According to Tuấn, the stock market does not reflect the current economy but shows the economy's expectations for the future. When interest rates decrease, industries, which are expected to be positive, are real estate, securities, building materials, and consumer goods, but all need time.

As for the banking industry, it is necessary to look further because when interest rates are reduced for a while, bad debts will stabilise again.

As for the stock market, experts said the positive point in the current period is that although foreign investors net sold VNĐ10 trillion, the securities market is still sideways or moving in a narrow range. That proves domestic investors are buying stocks and mainly individual customers, or the cash flow is gradually returning to the market.

According to Tuấn, in the current sideways time, investors looking for stocks with cheap valuations but cheap prices must be considered by each industry and asset. When the stock market moves in a narrow range, it's a good opportunity to select stocks.

Talking more about stock selection, Nguyễn Nhật Khánh, head of Mirae Asset Securities & Investments Company’s Investment Advisory Division, said under the current narrow sideways market, it is advisable to choose stocks with their own story and belong to the group of small- and medium-cap because cash flow will not have to spend too much force to push up the prices of these stock groups.

At the same time, it is not always possible to choose the leading stocks in the industry, but it is possible to consider choosing stocks that attract less interest, then the profitable bet will be higher. — VNS

Read original article here
Newer News
18/03 Market likely to be affected by Fed's meeting this week
18/03 Investors show strong interest in dividends at annual shareholders' meetings
15/03 VN-Index corrects, liquidity stays high
14/03 Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
13/03 Market rebounds from cautious sentiment
12/03 Losses in bank stocks weigh on market sentiment
12/03 ETFs continue to see strong outflows of foreign capital
01/03 Market mixed, liquidity reaches over $1 bln
29/02 VN-Index hits more than 1-year high
29/02 Vietnamese stock market rapidly advancing towards global standards: Prime Minister
Older News
30/05 Investors bet on positive market outlook, indices rise
19/05 Shares rebound on bargain-hunting
16/05 Securities companies must comply with regulations on deposit management: SSC
09/05 Many banks planning move to HoSE
07/05 Shares fall slightly on low liquidity
04/05 Economic growth to rebound in H2, now ideal time to selectively buy stocks: VinaCapital
04/05 Companies slow down their listing plans amid market turbulence
20/04 Selling pressure shapes reversal in trends
19/04 Shares manage to stay positive thanks to securities stocks
17/04 Market awaits Q1's business results
 
Newsletter Signup
Top Stories
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Corporate bond market quiet in February
Losses in bank stocks weigh on market sentiment
Market Update
Last updated at 10:55:01 AM
VN-INDEX 1,242.56 -1.00/-0.08%
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.