Customers at an Agribank office in Ninh Bình Province. — VNA/VNS Photo Hải Yến HÀ NỘI — Lower lending rates in the financial-banking market may not mean good things for the securities market, specialist Đào Phúc Tường said on Wednesday. Lower saving rates hit money savers first because their savings are not as profitable as they were, then purchasing power declines, Tường, former investment manager at APS Asset Management, said. “So if interest rates are getting lower, it shows businesses are struggling with their operation, leading to higher risks on the securities market,” Tường said. Lower interest rates pull the rates of government bonds down and the risk premium has to increase, he added. For example, in the past 10 years, the US government bond rates have fallen too much while the US market’s risk premium has kept increasing, he said. “When both interest rates and earnings go down, the company’s price-to-earnings (P/E) ratio will drop too,” the analyst said. “If earnings have a positive impact on P/E, the company shares will rise.” “Interest rates will fall to a certain level. We cannot see it as a good factor for the securities market.” According to Nguyễn Đức Hùng Linh, deputy CEO… Read full this story
- India in a Bear Market! We continue to focus on LQV companies for investments: Unmesh Kulkarni
- Escalating global tensions, cloud over banks to keep market weak!
- Should you keep on investing in an uncertain market? Read this
- 6 Things Your Mortgage Lender Wants You To Know About Getting a Home Loan During COVID-19
- Buying Things Is The American Way. Could COVID-19 Change That?
- Franklin Templeton fiasco: Have debt mutual fund investors learnt their lesson?
- Rural demand to help in recovery of tractors, fertilisers & agrochemical stocks: Kotak MF
- Well-run smallcap companies will find 2019 a fertile year: Saurabh Mukherjea, Marcellus Investment
- Moratorium extension not enough, loan recast will be needed: Analysts
- World economic prospects darken, rebound delayed: Reuters poll
Lower interest rates not a good thing for equity market have 329 words, post on vietnamnews.vn at August 14, 2020. This is cached page on VietMaz. If you want remove this page, please contact us.