Stock market has reason to recover

VCN - The faith that the pandemic will soon be under control and the recovery of the economy is the reason for the stock market to recover better.
The market still believes that the pandemic will soon be under control and the recovery of the economy
The market still believes that the pandemic will soon be under control and the recovery of the economy. Source: Internet

At the online discussion "Vietnam's economic destination in the second half of 2021", Nguyen Hoai Thu, CEO of the Securities and Bond Investment Division - VinaCapital said that, at the current time, with the pandemic unpredictable, leading to fears the economy would be affected and economic growth would definitely go down, investors had reduced their expectations.

However, many people still believed the economy would recover in the fourth quarter, which was why the stock market could start recovering better.

Nguyen Thi Phuong Lam, Analysis Director - Rong Viet Securities Company (VDSC), said the growth of the stock market depended a lot on cash flow. The current cheap money factor would be the driving force to support cash flow into securities. Low bank interest rates would stimulate cash flow into higher profitable channels. With the growth potential of the stock market, cash flow would be poured into investment as a possible profitable channel.

“In the first six months of this year, the amount of money from domestic investors also equaled the withdrawal of foreign investors. Therefore, the long-term development of Vietnam's stock market in the future would depend more on domestic investors and domestic resources," Lam said.

Nguyen Hoai Thu also shared that in a recent letter to investors she mentioned two reasons why they should continue to keep their investment. Firstly, this Covid-19 outbreak would be controlled and end soon, resulting in the recovery of the stock market. Secondly, investors who withdraw from the market at the time of a deep correction would often miss out on significant profits.

Thu also recommended individual investors when entering the market must learn carefully about the industry group. For investors who want to invest in the long term but do not know which industry group to invest in, they should learn and choose a fund management company to invest or learn about the stocks that they intend to invest to diversify investment stocks. They should invest in 20-30 stocks for each fund.

“Of course, the level of profitability is different, so investors need to learn carefully. For example, VinaCapital was also managing the fund. If the market recently recorded a growth of about 15-50%, funds managed by VinaCapital would have a profit of about 33%," Thu said.

Forecasting the cash flow of foreign investors in the last months of the year, Thu said the valuation of Vietnam's stock market was still very attractive and the market's profit was still better than many markets in the region so foreign investors were still interested.

In addition, VinaCapital recognised some investors in Asia, including Taiwanese investors, were still very interested in Vietnam. While investors withdrew net $1.3 billion, investors from Taiwan still poured money into the Vietnamese market, for example, the Fubon FTSE Vietnam ETF invested more than $480 million in Vietnam’s stock market.

Meanwhile, according to La Giang Trung, General Director of Passion Investment, with a 13% decrease in July 2021, the market has basically hit the bottom. After the correction, the market might increase to 30-40% and soar to 1,600-1,700 points by the end of this year, if Covid-19 is controlled in August and September.

By Khải Kỳ/Thanh Thuy

Related News

Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Fiscal policy - A pivotal milestone in promoting economic recovery and growth

Fiscal policy - A pivotal milestone in promoting economic recovery and growth

VCN - On the occasion of welcoming the Year of the Dragon 2024, Minister of Finance Hồ Đức Phớc shared with Customs Magazine about the outstanding results of the Finance sector in 2023 as well as the major orientations of the sector for 2024.

Latest News

Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN – Sharing direction of ta management in 2024, Mr. Mai Son, Deputy Director General of Taxation said that the Tax sector has implemented solutions to achieve “dual goals” of completing the revenue target while supporting enterprises in operation and economic growth.
Public investment - Expectations from key transportation projects

Public investment - Expectations from key transportation projects

VCN - As one of the three main growth engines of the economy, in recent times, public investment has played an important role, leading and activating all social resources for development investment. This important driving force continues to have very positive signals with disbursement results reaching 2.58%, higher than the same period. 2024 strives to achieve a disbursement rate of at least 95%.
More policy rate cuts forecast in 2024 to support economic growth

More policy rate cuts forecast in 2024 to support economic growth

There is still room for the State Bank of Vietnam (SBV) to make another policy interest rate cut in 2024 to boost economic growth, analysts believed.
Urgently complete Decree on application of Global Minimum Tax inline with roadmap

Urgently complete Decree on application of Global Minimum Tax inline with roadmap

VCN – Regarding the development of Decree on the application of Additional corporate income tax (Global Minimum Tax), Deputy Director General of the General Department of Taxation Dang Ngoc Minh has requested units developing the Decree to closely cooperate and give opinion in line with actual operations of corporations that are affected by Resolution 107/2023/QH15 to effectively facilitate taxpayers during the implementation of the Decree.

More News

Strengthen the applications of coercive measures to collect tax debt

Strengthen the applications of coercive measures to collect tax debt

VCN - The General Department of Taxation requests tax departments to fully implement measures to urge, enforce and disclose information under the provisions of the Law on Tax Administration to recover tax debt.
PM orders SOEs to improve production, business efficiency

PM orders SOEs to improve production, business efficiency

Prime Minister Phạm Minh Chính has requested State-owned enterprises (SOEs) to reform governance, improve production and business efficiency, and strongly promote development investment.
Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Prioritizing the allocation of public investment capital

Prioritizing the allocation of public investment capital

VCN - Public investment in 2024 continues to set a disbursement target of at least 95% of the total of more than VND657,000 billion of assigned public investment capital. Thus the task is to focus on allocating capital quickly and reasonably right from the beginning of the year.
6,144 retail petroleum stores issue invoices after each sale

6,144 retail petroleum stores issue invoices after each sale

VCN - According to the latest statistics of the General Department of Taxation, as of February 1, 2024, the country has 6,144 retail petroleum stores issuing electronic invoices after each sale.
Read More

Your care

Latest Most read
Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN - 2023 is the year that the domestic economy faces many difficulties and challenges and is negatively impacted by the world economy, causing great pressure in the revenue collection of the Tax sector.
Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Public investment - Expectations from key transportation projects

Public investment - Expectations from key transportation projects

VCN - For 12 component projects in the 2021-2025 period, although the first implementation years still had many problems for land and construction materials, investors and contractors had made efforts to organize construction and closely follow progress p
More policy rate cuts forecast in 2024 to support economic growth

More policy rate cuts forecast in 2024 to support economic growth

There is still room for the State Bank of Vietnam (SBV) to make another policy interest rate cut in 2024 to boost economic growth, analysts believed.
Urgently complete Decree on application of Global Minimum Tax inline with roadmap

Urgently complete Decree on application of Global Minimum Tax inline with roadmap

VCN - On November 29, 2023, the National Assembly approved Resolution No. 107/2023/QH15 on the application of additional corporate income tax under Global Anti-Base Erosion Rules. The Resolution takes effect from January 1, 2024, and is applied from fisca
Mobile Version