Foreign investors are edging back into emerging markets like Vietnam on hopes the recent significant recovery of the equity market will reassure those hoping to capitalise on stronger economic growth in the emerging world.
Trading on the Vietnamese securities market was essential and would not be disrupted under any circumstances during the fight against COVID-19, the State Securities Commission (SSC) said on March 31.
The Ministry of Finance has cut the fees of nine securities services and exempted fees for six others as from March 19 as part of efforts to support the stock market amid the negative impact of the COVID-19 epidemic.
Latest reports from investment funds in February show they have suffered from the decline of the market amid the global spread of the COVID-19.
Private-equity bank shares have performed well amid fears of COVID-19 in the last five weeks.
The benchmark VN-Index on the Ho Chi Minh City Stock Exchange (HoSE) took a nosedive to close at 835.49 points on March 9, recording the worst slump since 2002.
Foreign investors bought more Vietnamese stocks than they sold in January, snapping a month-long streak as net buyers after offloading shares in the last five months of 2019.
To stabilise investor sentiment after the Lunar New Year holiday, the Ministry of Finance has directed the State Securities Commission to closely monitor the market and crack down on the use of negative information about the coronavirus epidemic to manipulate stock prices.
The prospect of the Vietnamese stock market this year will be brighter, with profits of listed firms in 2020 likely to increase by 18% against 2019 while the VN-Index may rise by 20.7%.
Three large-cap companies that debuted on the Ho Chi Minh Stock Exchange (HoSE) in 2019 saw their shares beaten by the benchmark VN-Index at the end of the year.
The number of investors opening new accounts in 2019 fell from the previous year, according to the Vietnam Securities Depository (VSD).
US-Iran tensions and pre-Tet sentiment will be two key factors impacting the Vietnamese stock market in the coming week (January 6-10).
VN-Index could soar above the 1,000-point threshold thanks to positive macro-indicators and continued foreign investment, say securities companies.
After having declined for four straight weeks, the Vietnamese market may rebound in December as analysts and securities companies expect that cheaper shares will attract hungry investors amid the world’s volatility.
Though the current legal regulations allow foreign investors to fully own a local firm, the investors still face hindrances to pour funds into some conditional business lines.
The number of new listing firms on the two local bourses has remained modest in the first nine months of the year.
Vietnamese shares advanced on October 8 as attention shifted to companies with good earnings prospects amid a lack of supportive information.
The Vietnamese stock market suffered during the week from July 29 to August 2 after having rallied for four consecutive weeks amid negative news from the international markets.
Vietnam’s benchmark VN-Index has risen since the ratification of the EU-Vietnam trade agreement on the back of listed firms whose exports would be boosted by the deal.
Shares dropped on both Vietnamese markets on the first trading day of the week, following the uneasy global market climate.