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Prices surge on stock market, VN Index reaches record high

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Many new investors have made high profits after the stock market reached a record high.

Prices surge on stock market, VN Index reaches record high

The VN Index rose sharply by 24.66 points, or 2.07 percent, to 1,216.1 points, setting a record high in the 20-year history of the Vietnamese stock market. The old record, 1,204.33 points, was in 2018.

More than VND22 trillion, or nearly $1 billion worth of stocks, were traded in that session.

The VN Index has been recognized as one of the sharpest increasing indexes in Asia.

The cash flow raised the VN Index to the new peak of 1,224.45 points on April 2.

Some financial experts are worried about the sharp increases, while some experienced investors have begun selling stocks as they can “feel the danger”. However, many veteran investors still believe that stock prices will increase further.

The stock prices are increasing, but liquidity hasn’t risen dramatically. The trading value is still about $1 billion each session.

The brokerage director of a securities company commented that F0 investors’ cash is still flowing into the market and they have high confidence in the market. Hundreds of thousand of new accounts remain hot.

The Vietnam Securities Depository Center (VSD) reported that in February alone, the agency granted 58,000 new accounts to investors. In 2020, securities companies witnessed 50,000 new investors joining the market each month. About 600,000 new accounts were opened last year.

In 2010, securities companies had 1.5 million accounts. In early 2020, the figure was 2.2 million, an increase of 700,000 accounts after 10 years.

Meanwhile, in 2020, though the stock market declined because of Covid-19, the VN Index increased by 14.7 percent over the year before and nearly 70 percent over March, reaching 1,103.87 points. In early 2021, the stock market once again reached a new record.

Three bottlenecks

Analysts say that new investors are powerful. It is estimated that 90 percent of accounts are personal accounts and individual investors are believed to be driving the stock market.

The stock market faced pressure in March because of three problems.

First, a “traffic jam” occurred at the HCM City Stock Exchange (HOSE) which began in late December 2020. Many investors complained they could not make transactions in afternoon sessions because there were too many orders and the capability of the system was low.

The second problem was the pressure from foreign investors’ sales, while the third was the strong rise of speculation stocks.

However, according to Huynh Minh Tuan from Mirae Asset Securities Company, two of the three problems have been settled. The foreign investors’ net sales have stopped and cash has escaped from speculation stocks.

On April 1, 2021, foreign investors returned and made a net purchase of VND45 billion on HOSE after making a net sale of billions of dollars over the last year (by the end of March).

In the first quarter alone, foreign investors’ net sales reached VND14 trillion. Foreign investors are betting on a quick recovery thanks to big bailouts launched by the US and Japan.

Though purchasing power in the first trading sessions of April was not high, it helped restore investors’ confidence after sessions of net sales. Foreign investors mostly poured money into bluechips.

In the first quarter alone, foreign investors’ net sales reached VND14 trillion. Foreign investors are betting on a quick recovery thanks to big bailouts launched by the US and Japan.

On April 2, foreign investors’ net purchase value was VND700 billion.

Expectations

The fact that the VN Index breached the peak of 1,200 points has made investors more optimistic. Most analysts believe that the VN Index is striving for the 1,230-1,300 point area in short term.

They said the market will be more active thanks to positive information in the shareholders’ meeting season and good news about business performance in the first quarter.

Some reports predict that listed companies will see positive growth rates this year, and the EPS (earnings per share) may increase by over 20 percent.

If considering P/E (Price/Earnings ratio), Vietnam’s stocks still have an attractive valuation compared with other regional countries. Some foreign funds have even predicted that the VN Index may reach the 1,500 point peak this year.

The Vietnamese stock market expects a bright future thanks to the optimistic prospects for the global economy.

The US stock market reached a new peak after US President Joe Biden announced a spending plan focused on infrastructure. The S&P 500 Index has for the first time in history exceeded the 4,000 point threshold.

According to MBS Securities, high expectations are on shares of banks, securities, infrastructure development and building materials companies.

In addition, the serious measures taken to settle the order congestion at HOSE have helped.

Meanwhile, some analysts are cautious about predicting market performance. They think Vietnam’s economy will not make a breakthrough because of the lack of stimulus packages.

HOSE reported that the Vietnam’s stock market capitalisation value on the bourse reached VND4.46 quadrillion as of March 31, a 93.56 percent year-on-year increase. 

Duy Anh

Source: https://vietnamnet.vn/en/feature/prices-surge-on-stock-market-vn-index-reaches-record-high-725182.html

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VN-Index drops with trade value surges

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VN-Index drops with trade value surges

An investor looks at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.


Vietnam’s benchmark VN-Index fell 0.7 percent to 1,241.81 points Friday with trading value hitting a 10-session high.

The index stayed in the red throughout the day, dipping to around 1,231 points in the early afternoon before climbing and ending with a near 9-point fall. This is its biggest plunge in the last seven sessions.

Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, rose 10 percent to VND22.4 trillion ($975 million), the highest of the past 10 sessions.

The VN30 basket, comprising the largest 30 capped stocks, saw 22 tickers in the red, with VCB of state-owned lender Vietcombank and VNM of dairy giant Vinamilk the biggest contributors to the drop of VN-Index.

VCB fell 2.3 percent. The ticker has been going sideways around the VND100,000 level since February after climbing to a new historic peak of VND107,000 in early January.

VNM dropped 2.9 percent to a nine-month low. The ticker continued its downward trend that began in January, having lost 25 percent in four months.

VHM of real estate giant Vinhomes fell 1.6 percent to its lowest level since March 30.

BID of state-owned lender BIDV lost 1.5 percent, having fallen nearly 17 percent since its mid-January peak.

On the winning side, HPG of steelmaker Hoa Phat Group rose 2.4 percent, and CTG of state-owned lender VietinBank gained, 2.1 percent. They were the top tickers pushing up the VN-Index this session.

Foreign investors were net sellers for the fifth session in a row to the tune of VND330 billion, with the strongest pressure on VPB of private lender VPBank and HPG.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, fell 0.44 percent while the UPCoM-Index for the Unlisted Public Companies Market dropped 0.41 percent.

Source: https://e.vnexpress.net/news/business/vn-index-drops-with-trade-value-surges-4267353.html

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Inflation fears begin as economy recovers

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Customers shop at a supermarket in HCM City. VNA/ Photo

HCM CITY — The cost of raw materials used in many industries have risen sharply in the last few months, putting pressure on the prices of many essential goods.

Instant noodles, seasoning, cooking oil, and others have seen prices increase by 7 -10 per cent since the end of 2020.

The price of meat and poultry has increased by 10 -15 per cent.

Nguyễn Thị Trâm, a pig farmer in Đồng Nai Province’s Thống Nhất District, said the price of a 25kg bag of bran has increased from VNĐ245,000 in October last year to VNĐ295,000 now.

Prices of raw materials used to make feed, such as corn, rice bran and fish flour, are also rising.

But farmers cannot hike poultry price since they have to compete with cheap imported products.

Globally, the prices of raw materials and fuels are expected to rise again as COVID is gradually controlled, vaccination is done on a large scale and production and trade recover.

Dr Nguyễn Ngọc Tuyến of the Academy of Finance predicted the consumer price index (CPI) to rise more than last year but remain below 4 per cent for the year, the target set by the National Assembly.

Nguyễn Anh Tuấn, director of the Ministry of Finance’s price management department, warned there would be pressure on prices this year because of the rise in fuel prices.

But a spokesperson for a large supermarket chain in HCM City said the price of each item would be carefully considered before any increase is made, and essential goods are not expected to be affected much in general. —

Source: https://vietnamnews.vn/economy/942930/inflation-fears-begin-as-economy-recovers.html

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FTA providing impetus for Việt Nam – Chile trade

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Deputy Minister of Industry and Trade  Đỗ Thắng Hải  (centre) poses for a group photo with participants of the meeting in Hà Nội. — Photo courtesy of MOIT

HÀ NỘI — Despite there being no commitments on services and investment in the Việt Nam – Chile Free Trade Agreement (FTA), the pact has boosted trade and economic ties between the two countries.

The view was shared at the fourth meeting of the Việt Nam – Chile free trade council, which was held online and chaired by Deputy Minister of Industry and Trade (MoIT) Đỗ Thắng Hải and Vice Minister of Trade at Chile’s Ministry of Foreign Affairs, Rodrigo Yanez on Thursday.

According to the Ministry of Industry and Trade’s European – American Market Department, the two countries have enjoyed robust relations over the years.

Despite the difficulties posed by the COVID-19 pandemic, two-way trade in 2020 topped US$1.28 billion, up 4.43 per cent year-on-year and 2.5-fold higher than the figure recorded in 2013, prior to the FTA coming into effect.

Chile is one of Việt Nam’s four largest trade partners in Latin America, while Việt Nam is the largest trade partner of Chile in ASEAN.

Goods trade in the first four months of this year rose 15.3 per cent year-on-year to $401.1 million, with Việt Nam’s exports standing at $321.3 million, up 11.8 per cent.

Both sides recognised the efforts made to implement the FTA.

The subcommittee for trade in goods discussed matters regarding tariffs and origin of goods and considered the application of electronic certificates of origin to simplify procedures for exporters in both countries.

Meanwhile, the subcommittee for hygiene and phytosanitation worked on import procedures for several agricultural products.

Việt Nam has begun risk analysis on Chilean kiwi fruit while the South American country said it will begin analyses of Vietnamese rambutan in July.

Both agreed to step up measures to help Vietnamese and Chilean businesses capitalise on the Việt Nam – Chile FTA as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after it is ratified by Chile. —

Source: https://vietnamnews.vn/economy/942657/fta-providing-impetus-for-viet-nam-chile-trade.html

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