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

Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
The capital market will see positive change

The capital market will see positive change

VCN – Vietnam’s capital market has more balanced, harmonious and sustainable. However, besides the achievements, the market still faces many potential challenges. In order for the capital market to become an effective and sustainable capital mobilization channel, further improving the quality of goods and diversifying investors in the market is a key direction.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Diversify and innovate securities products to attract foreign investors

Diversify and innovate securities products to attract foreign investors

VCN - Mr. Kojima Kazunobu, Chief Advisor of the Japan International Cooperation Agency (JICA), said that Vietnam needs to make more efforts in developing the stock market in both quality and quantity to become a potential market, attractive to foreign investors.

Latest News

Ensuring financial capacity of bonds issuers

Ensuring financial capacity of bonds issuers

VCN - The Ministry of Finance is finalizing the draft Decree amending and supplementing Decree No. 155/2020/ND-CP detailing the implementation of a number of articles of the Securities Law. The amendment aims to continue to perfect the legal framework and overcome some shortcomings arising in the practice of the securities market.
Finance ministry announces five credit rating enterprises

Finance ministry announces five credit rating enterprises

One more company has been granted the certificate of eligibility since August.
Corporate bond issuance value rises by 60 per cent

Corporate bond issuance value rises by 60 per cent

In the first 11 months of 2024, the total value of corporate bond issuances reached nearly VNĐ403 trillion, a 60 per cent increase year-on-year.
Slower mobilization than credit may put pressure on interest rates

Slower mobilization than credit may put pressure on interest rates

VCN - According to the latest data from the State Bank of Vietnam (SBV), deposits in the banking system as of the end of September 2024 reached more than 14 million billion VND, an increase of 4.9% compared to the beginning of the year, but the rate was still slower than credit, which could put pressure on interest rates.

More News

Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Read More

Your care

Latest Most read
Ensuring financial capacity of bonds issuers

Ensuring financial capacity of bonds issuers

VCN - The Ministry of Finance is finalizing the draft Decree amending and supplementing Decree No. 155/2020/ND-CP detailing the implementation of a number of articles of the Securities Law. The amendment aims to continue to perfect the legal framework and
Finance ministry announces five credit rating enterprises

Finance ministry announces five credit rating enterprises

One more company has been granted the certificate of eligibility since August.
The capital market will see positive change

The capital market will see positive change

VCN - The capital market is an important component of the financial market that provides medium-and long-term capital, contributing to effectively mobilizing and allocating resources and creating an essential material foundation for the grow of national e
Corporate bond issuance value rises by 60 per cent

Corporate bond issuance value rises by 60 per cent

In the first 11 months of 2024, the total value of corporate bond issuances reached nearly VNĐ403 trillion, a 60 per cent increase year-on-year.
Slower mobilization than credit may put pressure on interest rates

Slower mobilization than credit may put pressure on interest rates

According to the latest data from the State Bank of Vietnam (SBV), deposits in the banking system as of the end of September 2024 reached more than 14 million billion VND
Mobile Version