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Asian shares stuck in holiday lull, bitcoin powers higher

by tuoitrenews.vn

TOKYO/NEW YORK — Asian shares hovered just below a record high on Friday as mixed U.S. economic data caused some investors to show restraint after a global stock market rally pushed many bourses to dizzying heights.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.03%, trading just shy of an all-time high reached in the previous session.

Australian stocks lost 0.31%. Shares in Tokyo fell 0.32%, pulling back from 30-year highs.

Futures for the S&P 500 were off 0.12%.

Markets in Greater China and most of Southeast Asia are closed on Friday for the Lunar New Year holiday.

China’s stock and bond markets, foreign exchange and commodity futures markets are closed through Feb. 17 for the holiday.

Bitcoin surged yet again to a new record high after BNY Mellon said it will offer custodian services for cryptocurrencies.

The dollar headed for a weekly loss, stung by bitcoin’s assent and disappointing U.S. economic data.

Trading in the United States and Europe on Thursday did not move prices enough to provide much direction, said Tom Piotrowski, a market analyst at CommSec in Sydney.

“We didn’t get much of a lead-in from the northern hemisphere,” Piotrowski said.

“Markets are in a bit of a holding pattern waiting for the next catalyst and it is just a question of whether that catalyst is going to be a positive one or a negative one.”

World stock markets were holding close to record highs on Thursday as investors weighed some tepid economic data against increasing vaccinations against COVID-19 and the prospect that more government spending and continued cheap money from central banks will drive higher growth and, eventually, inflation.

The MSCI world equity index, which tracks shares in 49 countries, fell 0.12% on Friday, also pulling back from a record high.

On Wall Street, the Nasdaq and S&P 500 eked out gains of 0.4% and 0.2%, respectively, while the Dow Jones Industrial Average slipped 0.02%.

Prices held near records as investors bet on more government spending, although enthusiasm was tempered when U.S. President Joe Biden said that China was poised to “eat our lunch,” raising fears of renewed strain on Sino-U.S. ties.

U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, which caused some traders to temper the optimism about the economic outlook.

Cryptocurrency bitcoin [BTC=BTSP] reached a record high of $49,000 before paring gains to trade up 0.57% at $48,282.

BNY Mellon said it will form a new unit to help clients hold, transfer and issue digital assets.

That came just days after Elon Musk’s Tesla revealed it had bought $1.5 billion worth of the cryptocurrency and would soon accept it as a form of payment for its cars.

Spot gold fell 0.22% to $1,821.86 per ounce. U.S. gold futures fell 0.19% to $1,823.30.

Gold prices are still on track for their best week in three amid broad dollar selling.[GOL/]

The dollar index drifted 0.02% lower on Friday, on course for a 0.6% weekly decline. [FRX/]

Soft demand at an auction of $27 billion of new 30-year Treasuries on Thursday continued to weigh on prices in Asia on Friday.

The yield on 10-year U.S. Treasuries rose to 1.1632%, while the 30-year yield edged up to 1.9468%.

Brent crude fell 0.69% to $60.72 a barrel, having dropped half a percent the previous session. U.S. oil fell 0.81% to $57.77 a barrel, after falling by 0.8% on Thursday.

OPEC cut its demand forecast and the International Energy Agency said the market was still oversupplied, which cast a gloom over energy markets.

Shares may extend gains during pre-Tet period

by bizhub.vn

Workers at FPT Corporation (FPT). Information technology stocks rose the most last week, mainly thanks to the push from FPT stocks, increasing 16.3 per cent. — Photo courtesy of FPT

The Vietnamese stock market may continue to advance during the two last trading days before the Tet (Lunar New Year) holiday but cash poured into the market is believed to decline and there might be a differentiation between flows.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 1.32 per cent to end Friday at 1,126.91 points.

It had climbed 6.65 per cent last week.

An average of 598.7 million shares was traded on the southern exchange during each session last week, worth VND13.5 trillion (US$590.2 million).

“The market is expected to continue its advance in the next two trading days. After overcoming the resistance zone around 1115-1118 points, VN-Index is very likely to head towards a strong resistance zone around 1180-1200 points in the short-run,” said Bao Viet Securities Co.

“The capital flow into the markets is expected to weaken slightly as the investors usually refrain from trading when Lunar New Year Holidays are approaching.

“As a result, there might be a divergence of capital flow next week,” it said.

The company said investors should maintain equity exposure at around 50 per cent to 70 per cent of total portfolio value.

“Investors holding a high proportion of cash may considerably increase the size of the positions when the market enters correction phases.

“For the investors with large equity proportions and are using margin, they would consider utilising the days the market rises sharply to reduce the equity exposure to a safer targeted level of exposure,” it said.

According to MB Securities Joint Stock Company (MBS), the stock market grew last week following the same trend with other markets around the world.

“Domestic investors still traded positively and there were few signs of cautiousness even with Lunar New Year approaching. Market breadth was quite positive in most stock groups, showing that the market’s uptrend will continue in the coming sessions” said MBS.

“The recent recovery momentum showed that the market was claiming what has been lost since the end of January when the market failed to surpass 1,200 points.

“Although it is probably likely that the market would go forward, it will face challenges at 1,170 points, which may be an opportunity for the late money flow,” the company said.

According to Viet Dragon Securities Co, although the market was shaky during Friday, selling pressure was not significant.

“Therefore, the market got over the short-term profit-taking pressure with quite positive movements at the end of the session. It is expected that the market will continue to recover in the near future.

“Investors can rely on the current recovery but avoid using leverage to minimise unexpected risks when the market enters the Lunar New Year holiday,” Viet Dragon Co said.

Information technology stocks rose the most last week, mainly thanks to the push from pillars such as FPT Corporation (FPT), increasing 16.3 per cent, CMC Corporation (CMG) up 4 per cent.

It was followed by banking group, with gainers in the industry being Bank for Investment and Development of Viet Nam (BID), up 4.8 per cent, Military Bank (MBB), gaining 5.5 per cent, Asia Commercial Bank (ACB), rising by 6.3 per cent, Vietcombank (VCB) increasing by 7.5 per cent, Saigon-Hanoi Bank (SHB), increasing by 10.3 per cent, Techcombank (TCB), up 13.4 per cent, Vietinbank (CTG), going up 17.4 per cent and VPbank (VPB), gaining 23.3 per cent.

Oil and gas group also performed well with notable stocks such as Viet Nam National Petroleum Group (PLX), rising 6.5 per cent, PetroVietnam Technical Services Corporation (PVS), rising 10.8 per cent, PetroVietnam Drilling and Well Services Co (PVD), up 12.7 per cent and Binh Son Refining and Petrochemical Company (BSR) up 14.6 per cent. — VNS

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Shares may extend gains during pre-Tết period

by vietnamnews.vn

Workers at FPT Corporation (FPT). Information technology stocks rose the most last week, mainly thanks to the push from FPT stocks, increasing 16.3 per cent. — Photo courtesy of FPT

HÀ NỘI — The Vietnamese stock market may continue to advance during the two last trading days before the Tết (Lunar New Year) holiday but cash poured into the market is believed to decline and there might be a differentiation between flows.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange rose 1.32 per cent to end Friday at 1,126.91 points.

It had climbed 6.65 per cent last week.

An average of 598.7 million shares was traded on the southern exchange during each session last week, worth VNĐ13.5 trillion (US$590.2 million).

“The market is expected to continue its advance in the next two trading days. After overcoming the resistance zone around 1115-1118 points, VN-Index is very likely to head towards a strong resistance zone around 1180-1200 points in the short-run,” said Bảo Việt Securities Co.

“The capital flow into the markets is expected to weaken slightly as the investors usually refrain from trading when Lunar New Year Holidays are approaching.

“As a result, there might be a divergence of capital flow next week,” it said.

The company said investors should maintain equity exposure at around 50 per cent to 70 per cent of total portfolio value.

“Investors holding a high proportion of cash may considerably increase the size of the positions when the market enters correction phases.

“For the investors with large equity proportions and are using margin, they would consider utilising the days the market rises sharply to reduce the equity exposure to a safer targeted level of exposure,” it said.

According to MB Securities Joint Stock Company (MBS), the stock market grew last week following the same trend with other markets around the world.

“Domestic investors still traded positively and there were few signs of cautiousness even with Lunar New Year approaching. Market breadth was quite positive in most stock groups, showing that the market’s uptrend will continue in the coming sessions” said MBS.

“The recent recovery momentum showed that the market was claiming what has been lost since the end of January when the market failed to surpass 1,200 points.

“Although it is probably likely that the market would go forward, it will face challenges at 1,170 points, which may be an opportunity for the late money flow,” the company said.

According to Việt Dragon Securities Co, although the market was shaky during Friday, selling pressure was not significant.

“Therefore, the market got over the short-term profit-taking pressure with quite positive movements at the end of the session. It is expected that the market will continue to recover in the near future.

“Investors can rely on the current recovery but avoid using leverage to minimise unexpected risks when the market enters the Lunar New Year holiday,” Việt Dragon Co said.

Information technology stocks rose the most last week, mainly thanks to the push from pillars such as FPT Corporation (FPT), increasing 16.3 per cent, CMC Corporation (CMG) up 4 per cent.

It was followed by banking group, with gainers in the industry being Bank for Investment and Development of Việt Nam (BID), up 4.8 per cent, Military Bank (MBB), gaining 5.5 per cent, Asia Commercial Bank (ACB), rising by 6.3 per cent, Vietcombank (VCB) increasing by 7.5 per cent, Saigon-Hanoi Bank (SHB), increasing by 10.3 per cent, Techcombank (TCB), up 13.4 per cent, Vietinbank (CTG), going up 17.4 per cent and VPbank (VPB), gaining 23.3 per cent.

Oil and gas group also performed well with notable stocks such as Việt Nam National Petroleum Group (PLX), rising 6.5 per cent, PetroVietnam Technical Services Corporation (PVS), rising 10.8 per cent, PetroVietnam Drilling and Well Services Co (PVD), up 12.7 per cent and Bình Sơn Refining and Petrochemical Company (BSR) up 14.6 per cent. — VNS

Japanese giant ENEOS Corporation registers to buy 13 million shares of Petrolimex

by www.vir.com.vn

ENEOS Corporation registered to buy 13 million shares of Petrolimex, increasing the ENEOS’s already major shareholding

ENEOS – a Japanese leading energy group (formerly JXTG Nippon Oil & Energy) – has recently registered to buy 13 million treasury shares of Petrolimex.

The move aims to lift its ownership at Petrolimex, strengthen its foothold in the burgeoning Vietnamese market, and capitalise on the country’s potential.

Before the transaction, ENEOS Corporation did not own any Petrolimex shares but it is linked with JX Nippon Oil & Energy Vietnam, a major shareholder that owns more than 103.5 million, accounting for approximately 8.73 per cent of Petrolimex.

In addition, Toshiya Nakahara, a member of Petrolimex’s Board of Management, is also part of the key personnel at ENEOS Corporation.

Previously, JXTG has formally changed its name to ENEOS as part of a corporate restructuring to address the oil industry’s imminent shift to a low-carbon society. Its core unit, refinery and gas station operator JXTG Nippon Oil & Energy, was renamed to ENEOS Corporation.

Petrolimex (HSX: PLX) previously notified the Ho Chi Minh City Stock Exchange that it will sell 13 million treasury shares or 1.1 per cent of the outstanding shares between August 27 and September 25.

In general, experts still believe Petrolimex 12-month target stock price would benefit thanks to growth in retail energy demand, expansion of more profitable directly-owned gas stations, and greater use of convenience stores to boost revenue from the gas station network.

By Nhat Minh

LG Electronics intends to sell off smartphone business to Vietnam’s Vingroup

by hanoitimes.vn

The Hanoitimes – Vingroup is one of the most potential buyers for LG Electronics’ smartphone business.

South Korea’s LG Electronics reportedly intends to sell off its smartphone business to Vietnam’s conglomerate Vingroup, according to South Korea’s media.

LG Electronics intends to sell off smartphone business to Vingroup. Photo: Vingroup

The South Korean brand is considering all options for its loss-making mobile division that could include closing or selling off its business, according to Reuters in Seoul. The brand would be focusing resources on premium home appliance and automotive electronics.

Possible buyers are Vietnamese conglomerate Vingroup, Facebook, Volkswagen and Google, and Vingroup is one of the strong acquisition candidates, according to NewDaily.

Vingroup, with a market capitalization of US$16.5 billion as of the end of 2020, accounts for 14% of the total market capitalization of Vietnamese listed companies. The group is operating in diverse business areas, including hotels and tourism, real estate, distribution, construction, automobiles, and mobile phones.

VinSmart, Vingroup’s subsidiary, entered Vietnam’s smartphone market in 2018. It has been producing smartphones under an original design manufacturing (ODM) contract with LG Electronics. Although it hasn’t yet had a strong presence in the global smartphone market, in Vietnam, VinSmart’s smartphone outstripped Apple’s iPhone to reach the third place in terms of market share after Samsung and Oppo.

Newspim reported that LG Electronics’ sales network, research & development center, Brazil-based production plant attract VinSmart for its expansion. LG Electronics’ share in the North American smartphone market was 12.9% in 2020, according to Strategy Analytics.

Until now, Vingroup has no comment on this. However, the group also revealed it will export 5G-enabled smartphones to the US this year. Last September, its subsidiary VinSmart exported the first batch of smartphones to this market and planned to assemble nearly two million units for its partner in 2021.

Shares to go up after Lunar New Year

by bizhub.vn

Investors at the trading floor of MB Securities Co (MBS) in Ha Noi. Confidence in the Government’s anti-pandemic measures and expectations of a stronger economic recovery will give a boost to the market. — VNA/VNS Photo Tran Viet

The Vietnamese stock market is forecast to prosper after the Tet (Lunar New Year) holiday in accordance with the strong growth of stock markets around the world, analysts said.

The benchmark VN-Index on the Ho Chi Minh Stock market ended the last trading session before the Lunar New Year (February 10) up 2.93 per cent, closing at 1,114.93 points.

An average of 519.8 million shares were traded on the southern market on February 10, worth VND7.3 trillion (US$317.8 million)

“The VN-Index increased gradually from the beginning of the morning session to the end of the afternoon session and was now back above the threshold of 1,100. Foreign investors were net sellers on both HSX and HNX. Besides, market breadth turned to a positive status with lower liquidity compared to the previous session,” said BIDV Securities Co.

“According to our assessment, the VN-Index may return to challenge its historic peak after the Lunar New Year,” the company said.

Nguyen Duy Dinh, a senior customer care specialist at MB Securities Company (MBS), said that the cycle of many years shows that two weeks after the Lunar New Year, the market usually increases mainly thanks to the financial-banking stock group.

This year was a bit different because of the COVID-19 pandemic, he said, adding that the decrease in liquidity before the Lunar New Year was reasonable.

“Investors want to withdraw money before Tet, and the COVID-19 pandemic has slowed down the market in terms of transactions,” he said.

In fact, the rate of increase of the VN-Index in the first five sessions after the Tet holiday during the past 20 years accounts for about 65 per cent, higher than the rate of decline.

“For the last 20 years, the rate of the scenario in which VN-Index rising in the first five sessions after the Tet accounts for about 65 per cent, higher than the rate of decline,” he said.

“COVID-19 movements are not the main factors affecting the market because investors have experienced this frequently in 2020. Amid the pandemic, the market still recorded significant growth despite some sessions of strong declines,” said Phan Dung Khanh, Maybank KimEng Vietnam Securities Company’s Director of Investment Advisory.

Khanh said that in the context of strong net-selling by foreign investors, institutional investors had not made significant changes to support the market. It was individual investors who were the main supporters of the market.

In January this year, the number of new accounts opened by individual investors reached the highest level in history. However, in February, the liquidity decreased continuously, showing that the cash flow of investors F0 could not be maintained, which can worry investors, he said.

Although the market is worrying, according to Khanh, there are still positive signs. Moreover, the news of social distancing in the whole of Hai Duong Province for 15 days and Ha Noi’s closing of street restaurants and coffee shops from February 16, there are some investors who think that this may stimulate online transactions, like in April 2020.

SSI Securities Joint Stock Company (SSI) said that the 1,075 point area was a good support zone for the VN-Index and the index was likely to continue moving up to the resistance zone of 1,175 – 1,200 points.

“However, the trading volume needs to improve again for the index to officially return to the uptrend,” it said.

Yuanta Securities Vietnam Co said the market was likely to maintain its momentum in the early sessions of the Lunar New Year.

“At the same time, the market will enter an accumulation period, thus there will be differentiation between sectors with low liquidity,” it said.

The company recommended short-term investors to continue taking advantage of corrections to increase their stock exposure and open new buying positions. — VNS