Speakers attending the conference on "Inflation, Interest rates and Securities" on July 15. (Photo: VNA) Hanoi (VNS/VNA) - The Vietnamese stock market witnessed astrong correction recently, mainly due to internationalmacroeconomic factors, including global soaring inflation and the USFederal Reverse rate hikes.
However, experts are still optimistic about the market’s outlookin the second half of 2022 thanks to positive internal forces.
After recovering quickly in 2021 with a growth of 5.7%, globaleconomies are facing uncertainties due to the ongoing complexity of theCOVID-19 pandemic; geopolitical risks, especially the Russia-Ukraine conflict;the slow down of the Chinese economy affected by the zero-COVID policy; andrising oil prices that resulting in record high inflation in manycountries.
Inflation, debt and energy are three hot issues, BIDV ChiefEconomist Can Van Luc emphasised at the conference on “Inflation, Interestrates and Securities” held by Vietnam Financial Consultant Association(VFCA) and VietFirst Securities Corporation (VSC) on July 15.
Statistics showed that the country’s stock market has tumbledsharply to hit bottoms for four periods in its history, including 2007-2008,2011-2012, 2018-2019 and this year.
In the three previous periods, the Fed rate hikes, high USinflation and high international oil prices influenced the market’s turbulence.And this time is no different, said Nguyen Minh Hoang, director of the AnalysisDepartment at VietFirst Securities.
For the first half of 2022, the market benchmark VN-Index fellmore than 20% and lost 25% from the peak of 1,500 points.
The market began its downtrend after Fed raised interest rates forthe first time in June.
However, experts are still optimistic about the market as thecountry’s economy sees positive signals.
“Our macroeconomy is stable with growth in GDP and consumer priceindex within control,” Hoang said.
Rallies of commodities prices are also expected to stop, helpingto contain inflation.
In addition, the quick recoveries of listed enterprises are abright spot for the market. “We believe that our listed companies stillcan post a growth of 21-25% this year,” Luc said./.
