Over $1.2 billion to flow to VN stock market after upgrading to secondary emerging market VietNamNet Bridge - Analysts believe that at least $1.2 billion will flow into the market after the upgrading of the country’s status. At least $1.2 billion will flow into the market According to Bao Viet Securities’ (BVSC) analysts, 28 ETF funds are making passive investments based on FTSE Emerging Markets indexes, with total capitalization value of up to $76.4 billion. BVSC predicted that if Vietnam is upgraded by FTSE to secondary emerging market by March 2020, after the amended Securities Law is ratified by the National Assembly, at least $375.34 million worth of passive investments will be injected into the market from ETF once ETF restructures its portfolios after March 2020. There are four criteria to satisfy listing in FTSE Emerging Markets Index, namely capitalization value, liquidity, foreign ownership ratio and transferable stock ratio. RELATED NEWS … [Read more...] about Over $1.2 billion to flow to VN stock market after upgrading to secondary emerging market
Global emerging market fund
IMF cuts world economic growth forecasts as import tariffs, emerging market issues bite
IMF cuts world economic growth forecasts as import tariffs, emerging market issues biteThe Saigon Times Daily A cargo ship is seen behind containers at an automated container terminal in Qingdao port, Shandong province, China October 1, 2018 – PHOTO: REUTERS NUSA DUA (REUTERS) - The International Monetary Fund on Tuesday cut its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows. The new forecasts, released on the Indonesian resort island of Bali where the IMF and World Bank annual meetings are getting underway, show that a burst of strong growth, fueled partly by U.S. tax cuts and rising demand for imports, was starting to wane. The IMF said in an update to its World Economic Outlook it was now predicting 3.7% global growth in both 2018 and 2019, down from its July forecast of 3.9% … [Read more...] about IMF cuts world economic growth forecasts as import tariffs, emerging market issues bite
Capital market faces imbalances
Viet Nam News HÀ NỘI — The Việt Nam’s capital market is facing a concerns in the imbalance between the credit market and the capital market. The statement was made by Deputy Prime Minister Vương Đình Huệ during a forum held in Hà Nội on Tuesday, discussing challenges and solutions to expand the capital – financial market of Việt Nam. Addressing the event, part of the Việt Nam Economic Forum, the Deputy PM said it is necessary to look into the imbalance between the credit market and the capital market, between credit and other added services in banks’ credit activities, and between the short-term and long-term markets, particularly the bond market. He said 53 per cent of businesses were not making profit at the end of 2016, saying that one of the reasons for this is the lack of capital. “Many companies depend on bank loans to operate, so their financial expense is very high, plus other … [Read more...] about Capital market faces imbalances
Green bonds prop up state eco fund
In a push towards a sustainable future, the private sector must spotlight green projects, Photo: Le Toan Great capital demand According to the United Nations Environment Programme, global capital demand for implementing sustainable development goals is estimated at $5-7 trillion a year, with a $2.5 trillion annual financing gap for key infrastructure sectors and related areas in developing markets. In a bid to shift Vietnam’s economic growth into a sustainable lane from its current carbon-intensive and environmentally-unfriendly expansion, the country would need roughly $30.7 billion by 2020 and possibly $21.2 billion for the following 10 years to support its Intended Nationally Determined Contribution (INC), according to the German development agency GIZ. Some 30 per cent of the credit requirement for green growth would come from the state budget, consisting of central and provincial funds as well as official development assistance (ODA), whilst the remainder will have to be … [Read more...] about Green bonds prop up state eco fund
Global trade war risk has limited impact on Vietnam’s securities
Fears of a trade war between the US and China have rocked global stock markets in recent sessions, but experts anticipate limited effects on Vietnam’s securities market growth as the market is on solid footing and is increasingly reliant on domestic demand. If the conflict occurred only between the US and China, Viet Nam would have a good chance to export to the US. - Photo giathep24h.vn On March 22, US President Donald Trump signed a memorandum that would impose 25 tariffs on up to US$60 billion in annual imports from China. In retaliation, China announced similar tariffs on about $3 billion of US imports. Though there is still speculation that China may expand its target to a broader range of US business interests, international experts believe the current trade spat between the two economic powers will be resolved through ongoing negotiations rather than moving toward a full-fledged trade war. This issue, however, continues to weigh on investor sentiment and raise … [Read more...] about Global trade war risk has limited impact on Vietnam’s securities
Global trade war risk has limited impact on Viet Nam’s securities
Fears of a trade war between the US and China have rocked global stock markets in recent sessions, but experts anticipate limited effects on Viet Nam’s securities market growth as the market is on solid footing and is increasingly reliant on domestic demand. If the conflict occurred only between the US and China, Viet Nam would have a good chance to export to the US. - Photo giathep24h.vn On March 22, US President Donald Trump signed a memorandum that would impose 25 tariffs on up to US$60 billion in annual imports from China. In retaliation, China announced similar tariffs on about $3 billion of US imports. Though there is still speculation that China may expand its target to a broader range of US business interests, international experts believe the current trade spat between the two economic powers will be resolved through ongoing negotiations rather than moving toward a full-fledged trade war. This issue, however, continues to weigh on investor sentiment and raise … [Read more...] about Global trade war risk has limited impact on Viet Nam’s securities
Market buoyedby blue-chip gains
Market buoyedby blue-chip gainsPhuong Thao By Phuong Thao - The Saigon Times Daily HCMC – With many blue-chips advancing in the afternoon session, the local market staged a strong rally on Thursday, lifting the VN-Index up 9.42 points, or 1.99%, against the previous day to close at 482.95. The global rally overnight from the U.S. stimulus bets and the strong decline of Chinese interest rates seemed to have provided domestic investors with comfort. Concerns from additional exchange traded fund (ETF) redemptions on the previous night were further kept down as the VN-Index approached the support level of 471 points and investors started to bottom fish. As soon as trading data suggested the Van Eck Vietnam’s redemptions were finished, the VN-Index quickly extended their intraday gains and closed up nearly 2% on the southern bourse, Viet Capital Securities Company (VCSC) said on Thursday. However, liquidity was low in Thursday’s session with only 46 million shares worth … [Read more...] about Market buoyedby blue-chip gains
Market rebound forecast for this week
Market rebound forecast for this weekKim Ngan By Kim Ngan - The Saigon Times Daily HCMC – Securities companies have said the local stock market might stage a mild rebound this week thanks to a recent liquidity improvement on HCMC and Hanoi bourses. During last week, the VN-Index dropped nearly 0.4%, closing at 600.36, while the HNX-Index gained 1.3% at 90.74. Matching volume expanded 20% on the HCMC market to 661.5 million shares while that on the Hanoi market jumped 47% at 380 million shares. Liquidity improvement was a positive sign for the market, according to vietstock.vn. With no supporting news, the market failed to maintain its uptrend last week, with four sessions ending lower on the Hochiminh Stock Exchange. Capital mainly poured into blue-chips and shares of securities and mining companies. Notably, speculators actively picked construction and realty tickers such as FLC, KBC, ITA and DLG. On the other hand, Hanoi market-listed KLF and FIT recorded high trading volume, … [Read more...] about Market rebound forecast for this week
Emerging stocks hit highest in nearly a decade
Emerging market stocks have surged 5 percent so far this year, helped by oil trading near US$70 a barrel, a soft dollar and a pick-up in global economic growth, while US inflation remains subdued, tempering rate rise expectations. MSCI's benchmark emerging equities index gained 0.7 percent after Asian shares reached another record high, as investors continued to pile into riskier assets.Among the day's big movers were Hong Kong (China) up 1.8 percent to a record closing high, with Tencent jumping over 2 percent. Chinese mainland shares rose 0.8 percent, closing at a 30-month high, while index heavyweight the Republic of Korea gained 0.7 percent. "We are seeing a lot of inflows to the EM asset class while the dollar has got weaker and weaker, which is supportive for emerging markets as a whole," said Trieu Pham, a strategist at MUFG. "So far, there has been nothing to change the (bullish) view on EM." In another sign of the sector's health, emerging markets fund manager Ashmore posted a … [Read more...] about Emerging stocks hit highest in nearly a decade
Clear skies for VN stock markets
After a busy 2017, foreign investors are gearing up for another eventful year on Vietnam’s fast-growing stock markets. Overseas investors can look forward to another record-breaking year Spotlight on consumer goods, retail, and bankingThe past twelve months have been a busy period for foreign investors in Vietnam. Major state divestments continued to take place, most notably the share sales of Sabeco last month and Vinamilk in November, both of which garnered significant attention from overseas investors. The two sales together earned $5.41 billion for the state budget, and introduced Thai Beverage and Jardine Cycle & Carriage as Sabeco and Vinamilk’s major shareholders, respectively.In the past year, foreign investors have also been active in share sales of leading private firms. One attractive sector is retail, which is poised for growth thanks to Vietnam’s expanding middle class and stronger consumption power. In October, Vincom Retail, … [Read more...] about Clear skies for VN stock markets