Thanks to strong recovery, the Vietnam’s stock market has been in the top two markets with highest growth globally, after China. Liquidity has also jumped to the highest level in eight weeks partly because foreign investors fostered disbursement into construction, construction materials, banking and foods stocks. One of the factors that backed the recovery of Vietnam’s stock market was net buying of foreign investors which helped to boost investors’ sentiment on the market and created support for the market to escape the earlier four-straight-month correction. Especially, the VN-Index fled from losing trend since its peak of 1,200 points in April 2018 to return to rising trend. By the last trading session of February this year, on three trading floors, foreign investors had bought in 377 million shares worth more than VND15.18 trillion while sold out 370 million shares worth VND13.62 trillion. Thus, total net buying volume reached 7.1 million shares in February worth … [Read more...] about New expectations for Vietnam’s stock market
Total bond market index fund
Securities, bond markets set for strong 2019
Viet Nam News Trần Văn Dũng, chairman of the State Securities Commission, speaks to Vietnam News Agency about the securities market’s prospects this year following negative growth in 2018. What’s your assessment of the size and quality of the stock and bond markets? The Vietnamese economy developed strongly in 2018 with macroeconomic indicators such as GDP growth, import-export turnover, inflation, the exchange rate, interest rate and budget spending meeting or beating targets set by the National Assembly. The securities market, despite seeing a strong decline due to the volatility of global stock markets, recorded increases in market capitalisation and trading liquidity. It remained a key fund-raising channel for private firms and made great contributions to overall economic development. The stock market value reached VNĐ3.96 quadrillion (US$170.3 billion) in 2018, up 12.7 per cent year-on-year. The figure was equal to 72 per cent of the … [Read more...] about Securities, bond markets set for strong 2019
Take Five: The Year of the Bear! World markets themes for the week ahead
1. Bear hugs After swallowing markets from Germany to China, the bears reached U.S. shores in December. Markets there are fighting back but the outlook is not great. For one, growing numbers of global indices have notched up the 20 percent peak-to-trough drop denoting a bear market. U.S. stocks, which seemed invincible until mid-year, have posted the worst December performance since the Great Depression. Second, the world economic outlook is steadily darkening and upcoming PMI data should confirm that. Sure, the U.S. economy is still expanding nicely. But when high-growth, investor-darling tech stocks fall prey, it shows optimism about growth is fizzling. And segments such as the Russell 2000 small-cap benchmark are stuck deep in the bears’ lair. Small firms often carry higher debt loads than larger peers so falling share prices highlight credit risks. In Europe, Germany’s DAX fell to the bears in early December and the euro zone bank and auto sectors are down a whopping 40 … [Read more...] about Take Five: The Year of the Bear! World markets themes for the week ahead
All emerging East Asian bond markets, except Vietnam, expand in Q2
All emerging East Asian bond markets, except Vietnam, expand in Q2By Thanh Thom The cover picture of the latest Asia Bond Monitor. All emerging East Asian bond markets, except Vietnam, expanded in Q2 – PHOTO: ADB HCMC – Vietnam’s local currency bond market was the only emerging East Asian market that contracted in the second quarter of this year, falling 1.4% quarter-on-quarter to roughly US$51 billion, following a 10.8% quarter-on-quarter rise in the first quarter, according to the latest quarterly update of the Asia Bond Monitor by the Asian Development Bank. The latest issue of the Asia Bond Monitor, titled “Emerging East Asian Local Currency Bond Markets: A Regional Update,” reported that local currency bond markets in the region grew 3.2% from the first quarter of this year to a combined value of US$12.6 trillion in late June, with government bonds expanding 4% and corporate bonds rising 1.8%. In Vietnam, local currency government bond yields … [Read more...] about All emerging East Asian bond markets, except Vietnam, expand in Q2
Capital market in need of FIE boost
Thin capitalisation is preventing banks from offering sufficient long-term loans to the local business community, Photo: Le Toan Thin capitalisation Many Vietnamese businesses are struggling with a debt-to-equity ratio that is too high to thrive at present. Some will eventually manage the high cost of borrowing to make earnings, while others could be making losses for a year, hoping to pull through in the next. Deputy Prime Minister Vuong Dinh Hue, at the Vietnam Economic Forum on the Capital-Finance Market held in Hanoi last week, cited data by the General Statistics Office of Vietnam showing that 53 per cent of businesses operating in Vietnam made no profit in the year ending on December 31, 2016, and they thus could not fulfil their corporate tax obligations to the country. Although the proportion of those making a profit for the year had significantly improved from the 30 per cent recorded in previous years, Hue nevertheless asked the question: “For an economy in which up … [Read more...] about Capital market in need of FIE boost
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
Investors still bet big on a bearish stock market
The US-China trade war may be one of the main reasons for the recent poor performance of the Vietnamese stock market A downbeat tone The corrective period of Vietnam’s stock market is extending into its third month, as the main gauge VN-Index fell below 900 points on July 5, to 899. The majority of blue chips, especially those of banks and oil firms, lost their value by 5-6 per cent in only one trading day, bringing the entire market down. Daily liquidity also plummeted from VND10 trillion ($434 million) to VND3 trillion ($140.4 million). On July 11 and 12, the market showed early recovery signs as the VN-Index gained 0.6 per cent, but the market gauge still remained under the 900-point mark (at 898.51 points). This means the VN-Index has lost 25.84 per cent of its value since April 9, when it hit its record high of 1,204.33 points. Due to these drastic falls, Vietnam has been ranked as one of the 10 worst-performing stock markets in the world, a complete contrast to the … [Read more...] about Investors still bet big on a bearish stock market
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
IPOs needed to improve market
The Government needs to enlarge the scale of the market and lure more State-owned enterprises to list shares through speeding up their equitisation, according to Luu Trung Thai, Vice Chairman of the Military Commercial Joint Stock Bank. The Government needs to enlarge the scale of the market and lure more State-owned enterprises to list shares through speeding up their equitisation. — Photo nhadautu.vnSuch a move would improve the sustainability of the securities market in 2018, he said at a meeting on Monday.However, the market’s total capitalisation, which was equal to 75 per cent of the country’s total gross domestic product (GDP), is far lower compared to other markets in the region, he added.For example, the figures for Thailand, Singapore and Hong Kong – three of the biggest markets in Asia – are 103 per cent, 215 per cent and nearly 1,000 per cent, respectively, Thai said.Though the size of the securities market doubled on a yearly basis in … [Read more...] about IPOs needed to improve market
Securities firms seek margin lending funds
Checking and supervising of electronic bond bidding at the Hanoi Stock Exchange. (Source: VNA)Hanoi (VNA) - Manysecurities companies have opted to issue corporate bonds to raise capital tofinance their margin lending service, following upbeat forecasts for the marketin 2018.Vietnam’s benchmark VN-Index closed 2017at over 984 points, a rise of 48 percent over the end of 2016. The localsecurities market value reached about 3.36 quadrillion VND (147.4 billion USD),equivalent to more than 74 percent of the country’s gross domestic product(GDP).The boom on the securities market hashelped brokerage companies expand their margin lending, but also illustratesthat their capital growth has not caught up with investors’ borrowing demand.To finance their lending expansion, manycompanies have decided to issue bonds.Saigon Securities Inc is seekingshareholders’ approval for the issuing of a maximum 1.2 million convertiblebonds worth total 1.2 trillion VND in 2018 at the rate … [Read more...] about Securities firms seek margin lending funds