After a long holiday, Vietnam’s stock market has seen sharp declines in the first trading sessions of May. Of which, in the trading session on May 6, the VN-Index lost nearly 17 points, or nearly 2 percent. In this trading session, statistics showed that on the Ho Chi Minh City Stock Exchange (HOSE) alone, market capitalization suffered a loss of nearly VND70 trillion (US$3 billion). In the next two trading sessions, although the benchmark just slightly slid, experts said that the market would be unlikely to recover as there is no group of stocks able to lead the market during this sensitive period. According to Rong Viet Securities Company (VDSC), shareholders’ meetings have passed with several pessimistic signals. Most firms set their business plans lower than growth rate of 2017-2018. Low liquidity in recent months showed that investors seemed to neglect with the market at this moment. Tension on the trade war between the US and China remained the main risk of the market. In short term, the market will face with more challenges than opportunities. First, negative information from negotiations between the US and China will possibly cause pressure on global stock market indices, especially S&P 500, Dow Jones and Nasdaq of the US stock market, which have climbed fairly high in the first four months of this year. At the same time, domestically, macro indicators are not as absolutely optimistic as the same period last year. This information will affect greatly to the country’s stock market. Therefore, the… [Read full story]
Leave a Reply