Prof. Dr. Tran Ngoc Tho, Member, National Financial & Monetary Policy Advisory Council, University of Economics, Ho Chi Minh City
Ho chi minh stock
The 11th Congress of the HCM City Party Committee (2020-2025 tenure) has designed 26 development targets for the term across five areas, including the GRDP growing 8% on average annually, the digital economy contributing 25% to the GRDP by 2025 and 40% by 2030, the social labour productivity expanding 7% on average annually, and at least 95% of the people being satisfied with the service of state administrative agencies in each field.
To achieve these goals, HCM City has outlined four development programmes with dozens of specific projects. A significant programme to the city’s economic growth and development is the key programme for the development of businesses, innovative entrepreneurship and key products. This programme consists of 13 specific programmes and projects, such as programmes to support the development of enterprises and products in the areas of information technology and communications (ICT), mechanics and automation, and food processing in the period of 2020-2030; a project on developing HCM City into a regional and international financial centre; and support policies for the sharing economy, the digital economy and the circular economy between 2020-2025.
HCM City has also identified many groups of solutions in order to achieve the targets and tasks set out by the 11th Congress of the municipal Party Committee. Accordingly, the city will continue to renovate its economic growth model in a rapid and sustainable manner on the basis of science-technology application and development, with science-technology and innovation as the main driver of socio-economic and cultural development. In addition, administrative procedure reform will be accelerated with more practical and specific solutions.
Among the development tasks, becoming a regional and international financial centre is considered one of HCM City’s key goals in the near future, and is also a burning aspiration of the city for many years. This task has been included in the city’s 10-year socio-economic development strategy (2021-2030). In March 2021, the municipal People’s Committee submitted a document proposing the Prime Minister approve the city’s plan to develop a project on building a regional and international financial centre in the locality.
HCM City possesses many advantages to form and develop itself into a regional and international financial centre in the near future. First of all, in recent years, the city has been a “locomotive” and a main driver of Vietnam’s economy, contributing about 23% of the country’s GDP and about 27% of the national budget. On average, HCM City has attracted more than 33% of the total number of foreign direct investment (FDI) projects in Vietnam. The density of financial institutions in the city is the highest compared to other localities, while the total mobilised capital of local credit institutions accounts for 24% of the country’s total sum. Its total outstanding loans also account for 28% of that of the entire economy. Moreover, HCM City is the birthplace of Vietnam’s first stock market, with the total market capitalisation at the Ho Chi Minh City Stock Exchange accounting for more than 77% of the national total and 51.27% of the country’s GDP in 2020.
According to Chairman of the municipal People’s Committee Nguyen Thanh Phong, the formation of a regional and international-level financial centre in HCM City will create a positive and pervasive effect for the southern region and the whole Vietnamese economy. Capital supply for the country’s development will be more plentiful when attracting more foreign financial institutions and international investment flows. Furthermore, the fact that the city becomes a regional and international financial centre will contribute to more effectively exploiting the economic potential of the southern key economic region and the country as a whole.
Towards the goal of becoming a regional and international financial centre, HCM City is aiming to become a national financial centre in the short term. In the medium term, the city aspires to become a regional financial centre with a large concentration scale, providing financial services for neighbouring countries and then expanding to countries in ASEAN and across Asia. In the long term, the financial centre in HCM City will become the destination of leading financial institutions and economic organisations in the region and the world. Prof. Dr. Su Dinh Thanh, Rector of the University of Economics HCM City, said that in order to become a regional and international financial centre, the city’s financial system should be developed synchronously. Accordingly, HCM City should focus on developing the system of financial, monetary, bond and stock markets; property management technology; and financial services; as well as strengthening the global network of financial technology and perfecting the monitoring system and financial regulations.
Shares ended higher on Wednesday with the VN-Index extending its rally on banking stocks.
The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rose 1.15 per cent, or 14.23 points, to finish the trading day at 1,256.43 points. The market breadth was still positive as 330 stocks rose while 93 fell and 33 stocks ended flat.
The southern market index had gained 0.23 per cent to closed Tuesday at 1,242.2 points.
The market liquidity was higher than yesterday with nearly 744.4 million shares traded on the southern market, worth VND21.2 trillion (US$915 million).
The index was boosted by large-cap stocks, mainly in the banking sector. The 30 large-cap stocks tracker VN30-index increased 1.42 per cent to 1,346.89 points. Twenty-five of the 30 biggest stocks in the VN30 basket increased Wednesday while four stocks decreased.
Many big bank stocks posted great performance yesterday with Techcombank (TCB) and HDBank (HDB) leading the gains, up 7 per cent. Military Bank (MBB), Vietinbank (CTG), Sacombank (STB), Vietcombank (VCB) and Asia Commercial Bank (ACB) all jumped.
Some other individual large-caps also made gains such as PetroVietnam Gas JSC (GAS), Vietnam National Petroleum Group (PLX) and SSI Securities Co (SSI), all up more than 2 per cent.
In a daily report to investors, BIDV Securities Co said: “The VN-Index increased gradually from the beginning of the morning session to the end of the afternoon session and is now back above the 1,255 points threshold.”
“Investment cash flow increased while foreign investors were net sellers on HoSE and net buyers on HNX. In addition, market breadth turned to a positive status with the liquidity not much different from the previous session.
“In our opinion, the VN-Index may face short-term profit-taking pressure at 1,260-1,280 points as this is the index’s historic peak area,” it said.
Foreign investors net sold VND779.63 billion on HOSE, including Hoa Phat Group (HPG) (VND190.8 billion), Vincom Retail (VRE) (VND187.9 billion) and Vietinbank (CTG) (VND172.8 billion). They were net buyers on the HNX with a value of VND15.51 billion.
Meanwhile, on the Ha Noi Stock Exchange (HNX), the HNX-Index rose 1.16 per cent to 280.93 points. The HNX30-Index gained 2.43 per cent to 423.17 points.
The northern market index had fallen 1.43 per cent to close Tuesday at 277.71 points.
During the session, over 134.8 million shares were traded on HNX, worth nearly VND2.8 trillion. — VNS
Hanoi (VNA) – Liquidity of the southern stock market in April stood at the highest level from the outset of the year, with more than 14.51 billion stocks traded at a value of over 366.94 trillion VND (15.94 billion USD), according to the Ho Chi Minh Stock Exchange (HOSE).
Average transaction value per session was over 18.34 trillion VND, up 18.68 percent from March, and 47.41 percent from the same time last year.
HOSE also said that trading of covered warrants (CWs) – Vietnam’s third securities product after stocks and futures also heated up in the month, with over 506.38 million items sold at the value of 2.32 trillion VND.
The market also saw the benchmark VN-Index set a 20-year record high of 1,268.28 points on April 20, with total value of market transaction on the day topping 22.46 trillion VND.
The index in April edged up 4.02 percent from the previous month to end at 1,239.39 points, and surged 12.28 percent year-on-year.
Material, finance and real estate stocks performed well in the month, with VNMAT stocks rising 16.2 percent, VNFIN surging 10.55 percent and VNREAL up 10.47 percent.
Meanwhile, energy, utility, and consumer goods stocks suffered the respective declines of 10.03 percent, 5.04 percent, and 2.95 percent.
The net sales of foreign investors fell 93.87 percent from March to 751 billion VND.
HOSE saw no newly-listed stocks in the month, while five codes of LAF, TVB, PAN, BSI and ASG moved to the Hanoi Stock Exchange.
As of April 29, 511 security codes were being trade on HOSE, including 391 stocks, three close fund certificates, seven exchange traded funds (ETF), 79 CWs, and 31 bonds.
The stock market capitalisation on HOSE reached more than 4.46 quadrillion VND, increasing 4.12 percent from March, and accounting for around 73.87 percent of the country’s gross domestic product in 2020./.
The stock market closed the first session of May on a mixed note as the growth of banking shares rescued the VN-Index from a fall while the HNX-Index slumped due to the resurgence of COVID-19 in Viet Nam.
On the Ho Chi Minh Stock Exchange, the VN-Index closed Tuesday up 0.23 per cent at 1,242.2 points.
Market breadth was negative with 252 shares falling, 140 rising and 50 closing flat.
Viet Nam’s benchmark index had traded below the threshold for most of the day but the recovery of many banks cushioned the market.
Seven of the nine listed banks in the VN30 climbed, including Vietinbank (CTG, up 2.2 per cent), Techcombank (TCB, up 2.4 per cent), Vietnam Prosperity Bank (VBP, up 1 per cent), Military Bank (MBB, up 0.9 per cent), Tien Phong Bank (TPB, up 0.6 per cent) and the Bank for the Investment and Development of Vietnam (BID, up 0.3 per cent).
Other gainers included Vingroup (VIC), steelmaker Hoa Phat Group (HPG), FPT Group (FPT), Khang Dien House Trading and Investment (KDH), with a growth of between 1.7 per cent and 2.4 per cent.
However, a number of blue chips slumped and dragged the market such as Vinamilk (VNM), insurer Bao Viet (BVH), Masan Group (MSN), PV Gas (GAS) and Mobile World (MWG).
Liquidity remained good with 798.5 million shares worth VND21.5 trillion (US928 million) traded in the southern market.
According to analysts, investors are still influenced by “sell in May” psychological factors and the resurgence of COVID-19 in several cities.
Although some firms reported positive business results in the first quarter, their stock prices are still going down. For example, sugarmaker Thanh Thanh Cong-Bien Hoa JSC reported its Q1 net profit climbed 225 per cent but its stock price fell 0.3 per cent on Tuesday.
According to Bao Viet Securities Co, the socio-economic report in April and the first four months of the year announced by the General Statistics Office last week with the CPI in April decreasing by 0.04 per cent from the previous month showed the rather good condition of the economy.
The VN-Index is forecasted to challenge the resistance zone of 1,268-1,275 points in the first week of May. This is still the resistance zone that might create fluctuations, adjusting the index when approached, analysts said.
On the Ha Noi Stock Exchange, the HNX-Index fell 1.43 per cent to close at 277.71 points.
More than 102 million shares worth nearly VND2 trillion were exchanged in the northern bourse. — VNS
An Phat Bioplastics Joint Stock Company has successfully carried out an auction to sell 75 million shares on the Ho Chi Minh Stock Exchange (HOSE), raising nearly VND1.06 trillion (US$45.5 million).
Before the auction, 92 investors registered to buy AAA shares, with the total number of registered shares up to 82.6 million shares, 10 per cent higher than the offering volume.
With the highest bid price of VND16,000 per share, the average winning price was VND14,236, per share; the entire amount raised from 75 million shares will be used for business development, restructuring debt, and production expansion.
In 2021, AAA set a revenue target of VND9.5 trillion, increasing 28 per cent, and after-tax profit of VND550 billion, increasing 94 per cent compared to the previous year, and dividend payout ratio of 15 per cent. The highest profit growth plan in the history of AAA is based on the expectation of positive contributions from three segments including industrial real estate, compostable products, and industrial packaging.
In the first quarter of 2021, AAA’s revenue and export volume of green products recorded double growth over the same period last year. In the long term, when the PBAT manufacturing plant invested by An Phat Holdings is put into operation, AAA will have the initiative in green materials, cutting production costs by about 20-30 per cent, thereby increasing competitiveness to expand its market.
With great market potential, along with many countries implementing policies to promote production growth and green product consumption, AAA’s shift to production of green products is a long-term growth driver for AAA in the coming years. Green products are expected to contribute 40-50 per cent to AAA’s packaging revenue in the next five years.
The successful auction of 75 million shares will help AAA have additional capital and restructure debt to develop new projects. In business results for the first quarter of 2021, despite the impact of the COVID-19 pandemic in Hai Duong, AAA recorded revenue of VND2.2 trillion, an increase of 45 per cent compared to the same period last year. After-tax profit in the first quarter of 2021 reached VND90 billion, an increase of 43 per cent compared to the same period last year, completing 24 per cent and 16 per cent of the revenue and profit plan for 2021, respectively. — VNS