Vietnamplus

US-Iran tensions and pre-Tet sentiment will be two key factors impacting the Vietnamese stock market in the coming week (January 6-10).

The number of new listing firms on the two local bourses has remained modest in the first nine months of the year.

The market sentiment will remain lateral in September weighed down by global economic and political tensions while trading quiet amid speculations of Q3 corporate earnings.

Investors may keep betting on bank stocks this week, securities firms said, but selling pressure may weigh on the market’s overall performance as local stocks are considered as being overbought in recent days.

The liquidity on the derivatives market has shown signs of improvement and stabilising in the past two weeks, beating previous projection that the new trading fees may discourage them from derivative trading.

Vietnamese companies are depending too much on bank loans, and when the number of companies increases, it will reduce their chance of receiving financing from financial institutions.

The derivatives market has grown strongly over the last three months as investors switch from stocks to derivatives to avoid short-term risks on the stock market.

Vietnamese shares underwent another strong decline on February 6 as investor sentiment remained negative following the selloff that had spread across global markets.

The Government needs to enlarge the scale of the market and lure more State-owned enterprises to list shares through speeding up their equitisation, according to Luu Trung Thai, Vice Chairman of Military Bank.

Vietnamese shares are forecast to move marginally this week as investors could realise their earnings after having priced in the growth prospects of both the market and local stocks.

Vietnamese shares plummeted on January 17 as investors realised short-term profits. Worries remained that the adjusted policy on margin lending could take effect early next month.

Vietnamese shares finished January 10 on a mixed note, hit by strong profit-taking. Energy shares continued to benefit from rising oil prices.

Vietnam’s benchmark stock index, VN-Index, could exceed 1,300 points in 2018 due to the positive outlook for the country’s economic growth and a strong inflow of foreign investment.

Clear, transparent and efficient policies are needed to encourage more foreign investors to jump into the Vietnamese securities market if it is to reach its considerable potential.

Shares rebounded on the HCM Stock Exchange on November 1 as large-cap stocks returned to positive territory. The overall market trading conditions remained negative, however, and signaled more volatility in the near future.

Shares declined on the HCM Stock Exchange on October 16 after rallying for six consecutive sessions as large-cap stocks lost steam on late profit-taking.

Shares retreated on the Ho Chi Minh Stock Exchange on October 5 as large-cap stocks were brought down by late profit taking, signaling poor investor sentiment.

Shares sank again on the HCM Stock Exchange on October 3 as large-cap stocks were hit by low investor optimism.

Shares fell slightly on the Ho Chi Minh Stock Exchange on September 29 as large-cap stocks lost steam and declined on investors’ late selling.

Vietnamese shares fell on both local exchanges on September 27 as energy, brokerage and bank industries dropped on profit-taking.