Thursday, March 28, 2024 11:22:07 PM - Markets open
VN-INDEX 1,290.18 +7.09/+0.55%
HNX-INDEX 243.92 +1.07/+0.44%
UPCOM-INDEX 91.48 +0.30/+0.33%
Fed's tapering will not affect Việt Nam's stock market
Vietnam News - 10/8/2021 1:55:41 PM
 (0 ratings. You must sign in to rate.)
 In the last three months of 2021, Việt Dragon Securities Company (VDSC) believes that the US central bank’s tapering may affect the global stock market, the securities firm said in its new strategic report.
 
Emerging markets recorded a strong correction in 2013 after the US Federal Reserve announced it would reduce monthly asset purchases from US$85 billion to $65 billion. 
 
Countries with large foreign currency debt and low foreign exchange reserves will suffer the most from currency devaluation along with the reversal of foreign capital flows.
 
However there is not much concern as Việt Nam’s foreign exchange reserves are quite abundant at $100 billion, making the ability to adjust the exchange rate more flexible, said VDSC. Therefore, the impact on the market benchmark VN-Index will not be too great from a macro perspective.
 
But given the volatility risk of the global stock market as the Fed may begin to withdraw pandemic-era support for the economy in November, the short-term movements are unpredictable. 
 
The market will turn to the third-quarter business results, which are scheduled to be released in October, to measure how the pandemic impacts enterprises’ activities, VDSC added.
 
The securities firm believed that the third-quarter business results will be differentiated among industries. However, in large-cap stocks that influence the market’s trend like real estate and bank stocks, the business outlook during the period is not really positive. Real estate and bank stocks account for nearly 54 per cent of market capitalisation.
 
The third quarter traditionally records the lowest business results for the real estate industry, while the prolonged social distancing orders in HCM City and neighbouring provinces have caused stagnation in sales activities and construction progress in key areas, including HCM City, Đồng Nai, and Long An. The delay could affect the contraction progress and profit records in the future.
 
For the banking sector, VDSC estimates that profit growth in the third quarter may slow down significantly compared to the second quarter of 2021. After a quarter of implementing distancing orders in HCM City, the picture of bad debt of the banking industry is in focus.
 
VDSC expects bad debts and restructured debts in the banking sector to rise sharply by year-end, affecting the speed and size of provisioning. However, there will be a lag in the formation of bad debts and a phase difference between the increasing speed of bad debt among banks. 
 
The company forecasted that the VN-Index will fluctuate around 1,240 - 1,380 points. The benchmark closed yesterday at 1,365.99 points, up 0.23 per cent. — VNS
 
Read original article here
 
Newer News
23/03 Shares sustain gains on strong investor confidence
20/03 Vietnamese securities companies race to boost capital amid high market demand
19/03 Large-caps pressured as increased profit-taking drives share decline
18/03 Market likely to be affected by Fed's meeting this week
18/03 Investors show strong interest in dividends at annual shareholders' meetings
15/03 VN-Index corrects, liquidity stays high
14/03 Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
13/03 Market rebounds from cautious sentiment
12/03 Losses in bank stocks weigh on market sentiment
12/03 ETFs continue to see strong outflows of foreign capital
Older News
07/10 Market rises for third day in a row
05/10 Shares end higher thanks to oil and seafood stocks
04/10 Market expected to continue downtrend this week
30/09 Energy stocks benefit from higher oil prices
29/09 Shares fall slightly on low liquidity
28/09 Vietnamese seafood exports target niche markets
27/09 Analysts cautious over market movements amid volatility
25/09 Stocks end lower on selling pressure
25/09 More room for insurance stocks to grow post pandemic
22/09 Banks continue bond issuance to meet capital adequacy ratio
 
Newsletter Signup
Top Stories
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Market Update
Last updated at 3:05:00 PM
VN-INDEX 1,290.18 +7.09/+0.55%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.