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Where is the stock market headed after scaling new peak?



Where is the stock market headed after scaling new peak?

An investor looks at stock prices on a smartphone at the Yuanta securities firm in District 1, Ho Chi Minh City, on March 2021. Photo by VnExpress/Quynh Tran.

Analysts are hopeful that the VN-Index’s latest breach of the 1,200 mark is sustainable unlike the previous three times.

The benchmark index surged 2.07 percent to a record 1,216.10 points on April 1, breaking the 2018 high of 1,204 points.

It then closed at 1,224.45 the next day. It had previously risen above 1200 on January 13 and 18 and March 18 this year.

But on the two occasions in January the index could not hold as investors offloaded large-cap stocks to take profits. On March 18 it hovered around the 1,190 mark throughout the day before a surge at close helped it close at 1,200.94. The next day it closed at 1,194.

On April 1, the index rose steadily, surging past the 2018 peak in the morning and continuing to rise until close to end with a near 25-point gain.

The upward trend continued on April 2 though system errors kept the gain low.

On the three earlier occasions the index was driven by mid-cap and penny stocks, but last week large caps were responsible, especially bank stocks, which indicates it could be sustained, according to Nguyen The Minh, head of retail research at securities firm Yuanta.

“To know for sure that the index has really surpassed the 2018 historical peak or if it is just a temporary rise before it falls again, we need to watch it for another one or two sessions.”

The morning session would be decisive since the overload problem continues at the Ho Chi Minh Stock Exchange, he said.

Le Thu Hang, head of the investment advisory department at FPT Securities, said: “The VN-Index has thrice failed to remain above 1,200 points this year. Many investors played it safe by selling stocks when they were still at a high price.”

However, in the last two sessions there was still high demand for stocks despite high prices, and so selling pressure is expected to be less this time, she said.

Hang said the VN-Index could hit 1,351-1,400 points this year.

Most securities firms expect the index to keep rising.

Bao Viet Securities JSC (BVSC) expected the gain to continue, though with corrections since some stocks are overbought.

It said the next resistance zone is at 1,235-1,250.

MB Securities, which too expected the index to keep rising, said: “If there are any fluctuations, it will be caused by investors restructuring their investment portfolio to invest in leading stocks.”



Vietnam’s Bamboo Airways plans to raise $200 million in U.S. IPO: chairman



HANOI — Vietnam’s Bamboo Airways plans to raise up to $200 million in an initial public offering in the United States, potentially securing a market capitalisation of up to $4 billion, its chairman Trinh Van Quyet said on Wednesday.

Bamboo Airways, owned by property and leisure company FLC Group, plans to offer a 5%-7% stake in the IPO, which it expects in the third quarter of this year, Quyet told Reuters in an interview.

“The IPO will be part of our efforts to expand our services globally,” Quyet said, adding that Bamboo Airways has been working with an international auditing firm for the potential offering on the New York Stock Exchange.

The company said last month it planned to list its shares on a local stock exchange in the third quarter, but Quyet said on Wednesday that was now “a backup plan, depending on market conditions”.

Quyet said the airline will increase its fleet to 40 aircraft by the end of this year, from the current 30, adding two Boeing 787-9 Dreamliners would be among the new planes.

He said the airline wanted to launch flights to new destinations including the U.S., Australia, Germany, Japan and the United Kingdom this year if the COVID-19 pandemic situation improved.

“We will start conducting chartered flights to the U.S. in July and target the launch of non-stop commercial flights between Ho Chi Minh City and San Francisco in September, with an initial frequency of three flights per week,” Quyet said.

Bamboo Airways, which made its maiden flight in January 2019, is targeting a 25% rise in pretax profit to 500 billion dong this year he added.


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Efforts to stimulate domestic consumer market continue as pandemic threatens exports



Consumers shop at Co.opmart supermarket on HCM City’s Nguyễn Đình Chiểu street. Cities and provinces across the country are seeking ways to promote domestic consumption of goods and services. VNA/ Photo Mỹ Phương

HCM CITY – Many provinces and cities have launched programmes this year to promote local consumer demand to support businesses as the COVID-19 pandemic continues to affect exports.

The Ministry of Industry and Trade will organise conferences to connect producers, suppliers and retailers, and events for producers and traders, especially small traders, to help take goods to residential areas, industrial parks and rural and mountainous regions, the Sài Gòn Giải Phóng (Liberated Sài Gòn) newspaper reported.

It will help encourage consumption by fostering the evening economy and holding fairs and exhibitions of products and services. It continues to implement the ‘Vietnamese people give priority to using Vietnamese goods’ programme.

It will also promote the adoption of IT and foster e-commerce.

The Hà Nội Department of Industry and Trade will organise five Vietnamese Goods Weeks this year to stimulate demand.

To be held in the districts of Hà Đông, Hai Bà Trưng, Nam Từ Liêm, Quốc Oai, and Ba Vì, they will have around 100 standard booths each.

Companies and co-operatives will exhibit food products, textiles, footwear, consumer goods from One Product One Commune programmes from Hà Nội and other cities and provinces.

The department will subsidise booth costs by 50 per cent.

The city will also support localities and businesses in Hà Nội and elsewhere in selling agricultural and aquatic produce that face difficulties in selling due to the pandemic.

It will strengthen communications and promotions, create the best conditions for businesses to reach consumers and expand their market.

Products displayed and sold at the events will all be Vietnamese products with quality, food safety and traceability guaranteed.

To effectively implement the programme, the department has called on people’s committees of districts and towns to review all businesses and co-operatives to participate in the 2021 Vietnamese Goods Week of Hà Nội, especially agricultural produce that are difficult to sell and the One Product One Commune programme.

According to the newspaper, the Cần Thơ City Department of Industry and Trade also plans to organise a promotional month programme, possibly from April 10 to May 10.

It will seek the participation of businesses, supermarkets, commercial centers, convenience stores, restaurants, hotels and entertainment venues.

HCM City plans to focus on digitisation of industry and promotion of domestic tourism.

Deputy director of the city Department of Tourism, Bùi Thị Ngọc Hiếu, said her agency is stepping up digitisation, and the sector would continue its efforts to boost domestic tourism to drive the recovery of the industry.

Tourism co-operation and linkages between HCM City and the north-east, north-west and the central regions would also serve to boost domestic travel, she added. –




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​Bamboo Airways plans US IPO in Q3



​Bamboo Airways plans US IPO in Q3

A Bamboo Airways aircraft lands at Da Nang International Airport in March. Photo by Shutterstock/Jeffry Surianto.

Private carrier Bamboo Airways is considering an initial public offering of shares in the U.S. this year to raise $200 million.

The IPO is expected to take place in the third quarter, with the company likely to offer a 5-7 percent stake to secure a market capitalization of up to $4 billion, Reuters quoted its chairman, Trinh Van Quyet, as saying on Wednesday.

It is preparing for the issuance together with an international auditing firm and plans to list on the New York Stock Exchange.

Last month, Quyet had announced the airlines plans to list 105 million shares on either the Ho Chi Minh Stock Exchange or Hanoi Stock Exchange at an initial price of VND60,000 ($2.61), but on Wednesday he said that has now become “a backup plan”.

“The US IPO will be part of our efforts to expand our services globally.”

It expected to operate charter flights to the U.S. from July this year and thrice-weekly commercial flights from HCMC to San Francisco from September.

The airline has received a permit from the U.S. Department of Transportation to carry passengers and cargo to that country.

This year it also plans to expand its fleet from 30 aircraft to 40, and launch flights to other new destinations like Australia, Germany, Japan, and the U.K. if the Covid-19 pandemic is under control.

It currently flies on 60 domestic routes.

Last year, it carried over seven million passengers to account for a 20 percent market share, and hopes to increase it to 30 percent this year.


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