Tuesday, January 31, 2023 12:19:30 AM - Markets open
VN-INDEX 1,102.57 -14.53/-1.30%
HNX-INDEX 220.78 +0.02/+0.01%
UPCOM-INDEX 75.40 +0.41/+0.55%
Banking, real estate not ideal options for short-term investors
Vietnamnews - 10/3/2022 4:24:56 PM
 (0 ratings. You must sign in to rate.)
By the end of this year, oil and gas, transportation, insurance, retail, and hydropower sectors will see positive signals, while the banking and real estate sectors are not ideal options for short-term investment, said experts from DNSE Securities Company.

 By the end of this year, oil and gas, transportation, insurance, retail, and hydropower sectors will see positive signals, while the banking and real estate sectors are not ideal options for short-term investment, said experts from DNSE Securities Company.
Experts from DNSE Securities Joint Stock Company said that the Fed continued to increase the US Dollar interest rate sharply by 75 basis points, leading to a high VND/USD exchange rate. VND depreciated against USD by 3.5-4 per cent in 2022, negatively affecting businesses that import goods or have loans in USD.
The State Bank of Vietnam (SBV) recently increased the operating interest rate by 1 percentage point due to the pressure of the Fed’s interest rate hike, showing that the SBV is prioritising the goal of controlling inflation and stabilising the macroeconomy, meanwhile maintaining low lending rates to support businesses. DNSE experts believe that this is a negative factor for the banking industry.
Amid rising interest rates to cool down inflation, global stock markets, as well as in Việt Nam, did not react positively as the cash flow sought safer havens such as the USD or Government bonds.
Inflation is under control, and the devaluation of the domestic currency is not as serious as in other countries, showing the proper management and direction of the Government and SBV in inflation control and exchange rate appreciation, and stabilising the country's economy.
Negatively affected
“The negative fluctuations in interest rates, as well as the high VND/USD exchange rate, will increase costs for businesses with a high debt structure in USD. Interest expenses increased due to continued high anchoring interest rates combined with exchange rate losses. The group of electricity and infrastructure; real estate sectors will be negatively affected by the current context,” said Nguyễn Ngọc Linh, Proprietary Director of DNSE.
“Especially for real estate businesses that have loans in USD when carrying out large projects, these businesses will have to bear higher interest costs and deeper exchange rate losses due to USD appreciation, affecting business results.
“The increase of the operating interest rate by the State Bank to reduce the devaluation of the Vietnamese đồng will help real estate businesses restructure debts, reduce interest rate and exchange rate risks. However, it takes time for the policy to come into reality, so in the current period, businesses will have to make efforts to prove their internal health and have many measures to combat external risks,” she said.
Oil and gas, transportation, insurance have opportunities
The crisis between Russia and Ukraine has reshaped the global flow of crude oil and changed shipping routes, making journeys longer as the EU switches to imports from the Middle East, and Russia switches to Asian countries such as China and India. It is expected that this will increase the price of fuel tankers. DNSE experts believe that the oil and gas transport group will benefit from this.
Insurance is an industry group that can benefit in the short term due to the SBV's move to increase operating interest rates, due to the specific nature of the industry, which is money trading and mobilising money through insurance products and bonds. Therefore, at the moment, this is the industry with the fewest risks and biggest benefits from the increase in interest rates.
Retail, hydropower
The retail industry is a notable industry group at the end of this year when the consumer demand for products increases after the COVID-19 pandemic, and at the same time, there are many holidays at the end of the year and petrol prices in Việt Nam are on the decline, causing inflation pressure to cool down.
The increase in electricity consumption thanks to the recovery of demand from the manufacturing sector after the pandemic also creates a push for the power sector, including hydroelectricity. VNS
Read original article here
Newer News
16/01 Experts call for favourable policies to help real estate
16/12 Domestic real estate market boom unlikely in 2023
16/12 Domestic real estate market boom unlikely in 2023
16/12 Interest rate for social housing loans to be raised to 5% in 2023
07/12 MoF to raise taxes on land and housing
07/11 Real estate market must be digitalised
Older News
13/09 Industrial real estate likely to pick up in remaining months
30/08 PM highlights solutions to ensure sustainable development of real estate market
16/08 Demand for logistics real estate increases sharply: Savills Vietnam
01/08 M&A deals light up property market in first half of 2022
18/07 Urban cities plan restructuring of public land
25/06 Party Central Committee urges sweeping changes to real estate market
21/06 S. Korean investment into Việt Nam property market increases
15/06 Vietnam’s real estate market attractive to RoK investors: consultancy company
30/05 Drastic measures needed to keep property market healthy: conference
16/05 Not lending to property sector will have mixed effects: analysts
Newsletter Signup
Top Stories
State-owned banks under capital increase pressure
Shares make large gains on banking, securities stocks
Trading in tight range ahead of Tết holidays
Enterprises in HCM City receive credit disbursement, but rates remain high
Market opens the new year on a positive note
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,102.57 -14.53/-1.30%
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...
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.