Vietnam stock market expected to rally in third quarter

By Thuy Nguyen
Tue, May 10, 2022 | 10:17 am GMT+7

The Vietnamese stock market is predicted to prosper from the third quarter of this year after downturns as regulators have tightened control to make it healthier, experts said.

The recent cases of corporate leaders arrested over market manipulation or violations of information disclosure has badly influenced investor sentiment, experts told a weekly finance talk show on Vietnam Television last week.

“Investors have withdrawn from the market, from blue-chips, midcaps, and penny stocks even though there were many groups of businesses having achieved breakthrough business results in the first quarter like fertilizers, seaports, chemicals, and technology,” said Le Duc Khanh, analysis director of VPS Securities Company.

VN-Index lost nearly 60 points to close at 1,269.62 on May 9, 2022, its lowest level in nine months.

VN-Index lost nearly 60 points to close at 1,269.62 on May 9, 2022, its lowest level in nine months.

The market has also seen investors follow trends instead of focusing on long-term investment or proper portfolio management.

Ho Quoc Tuan, senior lecturer at the University of Bristol, the U.K., said negative investor sentiment was seen in all markets. Another strong influencer is margin calls, under which investors rush to dispose some of the securities. "This process, combined with shrinking market liquidity, has made the market decline faster," he said.

However, both experts were of the view that recent re-corrections would bring investments back to the market later. Khanh added it is hard now to find an investment channel that could be more attractive than the stock market.

The pair believed the Vietnamese stock market would prosper from the third quarter this year, as post-pandemic economic recovery gains stronger momentum thanks to the peak tourism season, with profit margins expected to grow.

Tuan was of the view that businesses would secure good performance starting in the beginning or middle of the third quarter, and that corporate and individual investors would act during that time.

He added investors could become bullish towards the end of the year as the U.S. Federal Reserve raised its interest rates several months prior.

Both Tuan and Khanh recommended investments into the insurance industry as insurance companies would be offering encouraging and stable dividends. Other recommendations are the groups of electricity, water, and basic utilities; companies restructuring or undergoing merger and acquisition; and export firms.

In another suggestion, Saigon Securities Inc. Chairman Nguyen Duy Hung said 2022 would offer opportunities for those trading securities with their equity.

Addressing the company’s annual general meeting last Saturday, he said the 2022 opportunity for investors with non-borrowed cashflows, profitable for only a certain period, is much safer than "swinging to the top", which he said involves buying and waiting for prices to rise without any idea why they go up or down.

“While capital is no longer cheap, securities in 2022 still have a chance for non-borrowed cashflows,” he commented.

The Vietnamese stock market plunged deep on Monday, with VN-Index losing nearly 60 points to close at 1,269.62, its lowest level in nine months.

A margin call is a warning that you need to bring your margin account back into good standing, possibly by depositing cash or additional securities into your account, or selling securities to increase the ratio of assets you own entirely to the amount you borrowed.

Comments (0)
  • Read More
Vietnam startup expert closes Monkey in Black coffee shop

Vietnam startup expert closes Monkey in Black coffee shop

Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.

Companies - Thu, November 21, 2024 | 8:16 am GMT+7

Vietnam-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.

Politics - Wed, November 20, 2024 | 8:16 pm GMT+7

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.

Companies - Wed, November 20, 2024 | 6:17 pm GMT+7

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.

Finance - Wed, November 20, 2024 | 5:37 pm GMT+7

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.

Companies - Wed, November 20, 2024 | 3:52 pm GMT+7

Central Vietnam province okays $88 mln automobile part project

Central Vietnam province okays $88 mln automobile part project

Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.

Industries - Wed, November 20, 2024 | 3:44 pm GMT+7

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.

Industries - Wed, November 20, 2024 | 3:34 pm GMT+7

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.

Companies - Wed, November 20, 2024 | 2:29 pm GMT+7

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.

Industries - Wed, November 20, 2024 | 2:03 pm GMT+7

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.

Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.

Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7

Nusantara not yet feasible as Indonesia’s capital city: authorities

Nusantara not yet feasible as Indonesia’s capital city: authorities

Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.

Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).

Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7

Thailand takes more fiscal measures to sustain growth momentum

Thailand takes more fiscal measures to sustain growth momentum

The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.

Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7

Indonesia named world's most generous country in 2024

Indonesia named world's most generous country in 2024

Indonesia has been the world's most generous country for the seventh consecutive year since 2017, reported local weekly magazine Tempo.

Southeast Asia - Wed, November 20, 2024 | 11:41 am GMT+7

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Logistics facility brand Logicross, under Japan’s Mitsubishi Estate, kicked off the construction of its Logicross Hai Phong ready-built warehouse in Vietnam’s northern city of Hai Phong on Tuesday.

Industrial real estate - Wed, November 20, 2024 | 10:58 am GMT+7