Investors should temporarily observe the movement of money flow in the next sessions to re-assess the state of the market. — Photo tinnhanhchungkhoan.vn HÀ NỘI — The local market is forecast to move sideways with a strong divergence among stocks this week, with large-caps accumulating to enter a positive trend, analysts said. The benchmark VN-Index on the Hồ Chí Minh Stock Exchange gained 0.26 per cent to close Friday at 1,168.47 points. It declined by 0.43 per cent last week. An average of 579.2 million shares were traded on the southern exchange each session last week, worth VND14.8 trillion (US$641.3 million). “This week, the market is forecast to see cumulative and sideways movements with alternating up and down sessions,” said a stock analyst at Bảo Việt Securities Co (BVSC). “The index is likely to challenge the resistance zone at 1,175-1,185 points in the first sessions of next week. This shall put shaking and correcting pressure on the market when approaching. “Overall, the market is still in a cumulative sideways phase below the resistance zone of 1,185-1,200 points. “We believe that this is necessary for the market and stocks to create a new price range before targeting to surpass the historical peak of around 1,200 points,” he said. Investors should maintain stock exposure at 50-70 per cent of total investment and prioritise medium and long-term positions, Bách said. “Strong fluctuations and corrections of the market are still considered as an opportunity for investors to increase the proportion of short-term positions in their portfolio. Therefore, investors should consider stocks from these sectors: raw materials, oil and gas, steel, banking, securities and real estate,” he said. According to Việt Dragon Securities Co, the market continued to be cautious, however, it was still supported and slightly recovered at the end of the session. “Therefore, the process of testing supply-demand has not ended yet. The …
Market share trends
State-owned banks lag behind in lending growth
Of the ‘Big Four’ state-owned banks, BIDV, Agribank and VietinBank recorded growth rates that were less than the industry average of 14.6 percent a year in 2016-20 period, according to a note by Rong Viet Securities. Vietcombank was the only one to buck the trend with growth of 16.2 percent. "Most of the increase in the credit market share in recent years went to private lenders, while the state-owned lenders’ share dwindled," the report said. The latter lost a combined 1.42 percentage point of the market share, it said. Part of the reason has been state-owned lenders’ inability to increase capital and to dilute state ownership, it said. Meanwhile, private lenders like Techcombank, Military Bank and VPBank posted average growth of over 20 percent in the period, while Saigon Hanoi Bank achieve 18.8 percent and ACB, 17.4 percent. Some like TPBank and VIB even achieved growth rates of over 30 percent and 25 percent though their share of credit remained small at 1.4 percent and 1.9 percent. Rong Viet Securities analysts said since credit would continue to play an important role in helping the economy achieve GDP growth of 6-8 percent, lending growth is expected to remain in double digits. …
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VIETNAM BUSINESS NEWS FEB. 28
Export value skyrockets over Lunar New Year Vietnam's export turnover during this Lunar New Year saw breakthrough growth, occupying nearly half of the total export-import turnover. The latest data published by the General Department of Vietnam Customs showed that export volume over the seven days (February 10-16) of the Lunar New Year holiday reached $730 million, rising 79 per cent on-year and accounting for about 44 per cent of the $1.67 billion export-import turnover. The main export articles include mobile devices and components valued at $332 million; computer and electronic products worth $251 million. The two categories accounted for 80 per cent of the total export value. This Lunar New Year saw exports going to 80 markets, seven more than last year. China continues to be the leading export market with a value of $189 million (26 per cent). Following are the US ($152 million), South Korea ($67 million), and Hong Kong ($57 million). According to statistics from the General Department of Vietnam Customs, there were 960 import-export businesses, up 59 per cent on-year. Nevertheless, importers still outnumbered exporters with an import turnover of $940 million, up 37 per cent on-year. Thus, from early this year to February 16, the total export-import turnover reached $74.51 billion, up 31 per cent on-year. Of this, exports hit $38.57 billion, up 36 per cent on-year while imports reached $35.94 billion, up 26 per cent, resulting in a trade surplus of $2.63 billion. Drug market forecast to grow by 15 per cent in 2021 The pharmaceutical industry grew by just 2.8 per cent last year, much lower than its average 11.8 per cent growth in the last five years. It is expected to recover and grow by 15 per cent this year, mainly due to a rapidly ageing population and increasing incomes, analysts at SSI Securities Corporation said. Last year there was a short supply of active pharmaceutical ingredients from China and India due to social distancing and …
