Vietnamplus

The State Bank of Vietnam (SBV)'s exchange rate management policy has been appropriate and effective, creating benefits for the economy and confidence for the market.

The reference exchange rate and exchange rates of commercial banks have increased continuously in recent days, with the reference exchange rate making its record high on May 8 at 23,046 VND. However, economists said that there is nothing to worry about this situation.

Vietnamese shares struggled on March 11 as the market declined due to low liquidity.

The yield of Government bonds (G-bond) has continued to decline and hit seven-month lows as the US Federal Reserve (Fed) seems unlikely to hike interest rates and the domestic monetary market has shown positive movements.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange fell by 1.98 points to end at 908.67 points on the last trading day of the lunar year.

Vietnam’s stock market is set for unpredictable short-term movement, as both local indexes witnessed a choppy trading week last week, on low liquidity and weak cash flow.

The securities market ended its first trading week of 2019 at 880.9 points.

The recent increase in the VND/USD exchange rate was due to inside and outside impacts such as some poor sessions in the domestic stock market and the USD price rise globally, according to Pham Thanh Ha, head of the State Bank of Vietnam (SBV)’s Monetary Policy Department.

The State Securities Commission (SSC) has issued a draft regulation requiring the initial margin ratio contracted by securities companies for margin lending to be at least 60 per cent.

Shares fell slightly on January 24 on the Hanoi Stock Exchange after rising for four consecutive sessions, due to investors’ profit-taking attempts that hit the large-cap stocks in the energy and banking sectors.

Vietnamese shares closed on December 26 on a positive note as large-cap stocks were boosted by expectations for better quarterly earnings and rising oil prices.

Shares on both local exchanges declined on December 13 with investors cautious about market volatility.

Shares extended gains on November 23 but caution appeared among investors after the VN-Index hit its decade-high.

In contrast to Vietcombank’s move to cut deposit interest rate a week ago, two other large State-owned commercial banks -- Vietinbank and BIDV -- this week announced they were raising the rate.

The market trend of heavy dependence on several individual stocks generated some volatility in last week’s trades.

Vietnamese shares went through a rough trading week with rising investor caution. However, the market is expected to move up this week when listed companies announce third-quarter earnings.

Vietnam’s derivatives market posted strong growth in September, the second month of its operation, with 9,679 accounts trading on the market opened as of September 29 – up 34.5 percent from the end of August.

Vietnam’s benchmark VN-Index fell slightly on September 26, covering part of losses made in intraday trading as investors hunted for low-priced stocks.

Investors are shifting off blue chips and flirting with speculative stocks, making it more difficult to predict market trends.

Shares on the two stock exchanges opened this week’s trading with gains as investors demonstrated their rising confidence in the market outlook.