Equity market

Equity market prospects seen bright this year Kim Ngan HCMC – A number of securities experts have said prospects for Vietnam’s equity market would be bright this year given macro-economic stability, high gross domestic product (GDP) growth and improved business conditions. Ngo The Hien, deputy head of analysis at Saigon-Hanoi Securities Company (SHS), said in Dau tu Chung khoan newspaper that he is upbeat about stock market growth this year. High GDP growth and the stable macro economy are among the factors that will support the market, Hien said. The equitization and listing of State-owned enterprises (SOEs) are expected to increase the volume of shares, especially quality ones, on the market. Authorities are expected to take measures to improve Vietnam’s ranking in global equity markets. New products such as derivatives, covered warrants and short-selling transactions will be introduced. Expert Hoang Thach Lan said 2016 was a good year for the local stock … [Read more...] about Equity market prospects seen bright this year

Equity market reverses losses Kim Ngan HCMC – The HCMC exchange performed positively on December 14, backed by gains of various stocks, including speculative ones, with the VN-Index leaping 10.48 points (1.6%) at 665.14 points. Real estate developer HQC stole the limelight as it shot up to the ceiling price just 20 minutes into the trading day. Its increase maintained until the end of the session. HQC stood at VND2,480 per share at the close with 77 million shares changing hands, the biggest trading volume on the southern exchange. Foreign investors have net bought HQC over the past five sessions. HQC leaders said the firm has encountered difficulties implementing social housing projects, which affects HQC share transactions on the equity market. However, the enterprise stressed that its operation in other spheres has been normal, according to Dau tu Chung khoan newspaper. HQC’s rise buoyed other speculative stocks like FLC, HNG, HHS and KSA as they jumped to the … [Read more...] about Equity market reverses losses

Equity market seen volatile this week Kim Ngan HCMC – Securities companies have said the domestic equity market could face volatility with liquidity remaining low this week. Nguyen Hong Khanh, head of analysis at Sacombank Securities Company, told Dau tu Chung khoan newspaper that investors are waiting for the outcome of the U.S. Federal Reserve’s meeting on interest rate hikes early this week and the portfolio rebalancing of exchange trade funds at the year-end. Phan Dung Khanh, head of investment analysis and consultancy at Maybank Kim Eng Securities Company, said the VN-Index fell below the important supporting level of 670 points two times last month, so the market’s short-term bias is negative. Besides, liquidity stayed low last week despite the index’s gains, boding ill for the market. The VN-Index last week fell 0.32% from the previous week at 663.07 points while the HNX-Index dipped 1.93% at 79.61 points. The average matched volume stood at 95.93 … [Read more...] about Equity market seen volatile this week

Rate cuts seen backing equity market Kim Ngan HCMC – Interest rate cuts will support enterprises and the economy as a whole and help inject more money into the equity market, said securities companies. Nguyen Hong Khanh, head of the analysis department at Sacombank Securities Company, was quoted by Dau tu Chung khoan newspaper as saying that the fall in lending rates would lead deposit rates to edge down. This rate change will force investors to find alternative investment vehicles, such as securities and property. Lending rate cuts are also good news for businesses, especially those in the apparel sector, as cheaper loans could allow them to slash costs and expand operations, thus buoying stock investor sentiment. Last week saw multiple stocks extending gains, leading the VN-Index to rise 0.45% versus the previous week at 687 points. The HNX-Index edged 0.19% higher at 85.45 points. The average matched volume on the HCMC bourse was nearly unchanged from the week earlier at … [Read more...] about Rate cuts seen backing equity market

ETF rebalancing to impact equity market Kim Ngan HCMC – Exchange traded funds (EFF) FTSE and VNM this week will begin their portfolio rebalancing, which is expected to leave significant impact on the equity market, according to securities companies. Nguyen Ngoc Lan, head of brokerage at Agribank Securities Company (Agriseco), was quoted by Dau tu Chung khoan newspaper as saying that the two ETFs may offload a number of large caps and pick dairy stock VNM. This means VNM could attract cash flow while heavyweights like VCB, MSN, HPG and PVS might face a selloff. She said the stock market could turn volatile as ETFs’ rebalancing will greatly affect supply and demand on the market. The VN-Index ended down 0.35% at 666.88 points last week while the HNX-Index added 0.51% at 84.47 points. The average matched volume remained almost unchanged at 97.4 million shares per session on the HCMC bourse, and inched down 2% to 39.9 million shares per session on the Hanoi exchange. … [Read more...] about ETF rebalancing to impact equity market