Stock market confronting macro risksBy Phuong Thao HCMC – The stock market is still exposed to many macro risks such as foreign capital withdrawal and rising inflation, although many international organizations have raised Vietnam’s gross domestic product (GDP) growth forecast. Since the beginning of the second quarter, the VN-Index has shed over 20%, having earlier seen share prices skyrocket. Notably, foreigners have been aggressive on the selling side, focusing on large caps such as property giant VIC, steel maker HPG and dairy enterprise VNM, said a news report on vietstock.vn. The U.S. Federal Reserve’s (Fed) rate hike is the main reason behind the foreign withdrawal. The Federal Open Market Committee (FOMC) recently hiked its target range for the federal funds rate by a quarter of a percentage point to a range of 1.75% to 2%, marking the second hike this year and the seventh hike since 2015. Further, the Fed signaled it would accelerate the frequency of … [Read more...] about Stock market confronting macro risks
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VietNamNet Bridge - Foreign investors have been net sellers over a couple of weeks, but this does not mean they are leaving Vietnam, experts say. Vietnam was the best Asian market in 2017 and has had record high trading in the first months of 2018. However, foreign investors have been net sellers since April and through May which has sparked concern about the outflow of foreign capital. The dong/dollar exchange rate has been stable since the beginning of 2018. The exchange rate fluctuation is predicted to be around 0.5 percent this year compared with the end of 2017. The State Bank of Vietnam has been buying foreign currencies in an effort to stabilize the exchange rate and the liquidity, and to control inflation. RELATED NEWS Foreign investors continue to be net sellers in stock market Stock market expected to be upgraded to emerging by 2020 Kim Chi … [Read more...] about Vietnam stock market turns bear, but foreign investors stay
VietNamNet Bridge - Businesses are rushing to issue shares to increase their charter capital amid the stock price upswing that began last year. However, analysts warn that the movement may lead to an oversupply of stock. Analysts warn of an oversupply of stock Issuing shares to raise funds Sam Holdings JSC’s shareholders’ meeting approved a plan to issue 7.2 million shares to pay dividends and issue 100.9 million shares to existing shareholders to raise its charter capital from VND2.417 trillion to VND3.5 trillion. Sam Holdings said it would issue shares at the minimum price of VND10,000 per share, or VND2,000 higher than the current market price. If the company succeeds with the share issuance, the number of shares in circulation would increase by 44.7 percent. If Sam Holdings fulfills this year’s business plan, or profit increases by 26 percent as expected, profit growth would not catch up with the capital increase. As the real estate market has warmed up … [Read more...] about Stock market still hot, but experts warn of oversupply
VietNamNet Bridge - If everything goes smoothly, the Vietnam stock market may be upgraded to an emerging market by 2020. Vietnam hopes its stock market would be upgraded to an emerging market by 2020 The Saigon Securities Incorporated (SSI) March financial and monetary report showed that the stock market scale has grown rapidly with value reaching $191 billion by the end of the first quarter of 2018, equal to 95 percent of 2016 GDP, an increase of 24.7 percent compared with the end of 2017. The scale is approximate to that of the UAE stock market ($245 billion), the Philippines ($270 billion), and higher than that of many emerging markets, including Qatar ($131 billion), Pakistan ($82 billion) and Egypt ($58 billion). The market liquidity has also increased to VND8.8 trillion per trading session, rising by 80 percent in comparison with the average level of 2017. The market liquidity has also increased to VND8.8 trillion per trading session, rising by 80 percent in … [Read more...] about Stock market expected to be upgraded to emerging by 2020
VietNamNet Bridge - The Vietnamese stock market in 2017 saw stock prices escalating, but not all investors could make money. The stock market in 2017 saw stock prices escalating Tuan, a 27-year-old investor, spends most of his time watching electronic boards on securities and trading floors and calling brokers. He was surprised that the CMG share price had dropped so dramatically despite the upward trend of the market. The high GDP growth rate, the government’s actions, and foreign capital flow are the three factors behind the strong rise of the stock market in 2017. ‘Too strong’, ‘crazy’ and ‘incredible’ are the words investors use to describe the rise of the stock market in 2017. RELATED NEWS GDP growth must rely on internal strength: economists Three scenarios for Vietnam stock market in late 2017 Kim Chi … [Read more...] about What’s behind the strong performance of the stock market in 2017?