Prolonged trade war threatens local market

Shares are forecast to suffer this week after negative developments in US-China trade relations.

China's prolonged falling yuan may harm Vietnam's trade
Vietnam - fashion manufacturing winner from US-China trade war

Prolonged trade war threatens local market
Industrial zone real estate stocks recorded the strongest rise last week. VNS Photo Truong Vi

Vietnam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange finished last week down 0.09 per cent to close at 974.34 points.

The index had lost a total of 1.69 per cent on a weekly basis.

An average of 207.5 million shares was traded in each session on the southern bourse, worth VND5.4 trillion (US$230.8 million).

According to Nguyen The Minh, head of analysis at Yuanta Securities Vietnam Co, the market will be strongly affected by recent geopolitical developments, especially the escalating US-China trade war.

This may dampen investor sentiment and increase caution, Minh told news site tinnhanhchungkhoan.vn.

Ngo Quoc Hung, professional senior market researcher, Market Strategy Division, MBS Securities, said despite the spreading wave of lowering interest rates by central banks over the world, US-China trade tensions and the fluctuation of China’s yuan is making investors nervous.

Global stock markets have experienced strong declines in recent weeks, high bond prices have caused sharp falls in interest rates and safe assets such as gold and Japanese yen have risen sharply, Hung said, adding that these factors will continue to influence the evolution of the domestic market next week.

“If the world market does not experience bad developments, the local market is also less likely to decline,” Hung said.

Focus is being shifted to the rising net selling of foreign investors, which started early this month. The total net sell value during the last two weeks reached VND1.5 billion, two thirds of which was last week, the strongest net sale value since the beginning of the year.

 

According to Nguyen Hong Khanh, head of market analysis at Viet Nam International Securities Joint Stock Company (VIS), in the past week, the global financial system was affected by trade tensions between the US and China.

This has caused global economies and equities markets to become more volatile, including Vietnam, Khanh said.

“One of the most worrisome factors now is China devaluing the yuan, following threats from US President Donald Trump to impose new 10 per cent tariffs on $300 billion worth of Chinese products starting September 1,” Khanh said, adding that this will fuel tensions between Beijing and Washington while signalling the possibility of a currency war.

“If the exchange rate becomes unstable, it will directly affect the flow of foreign indirect investment into Vietnam’s stock market,” he said.

Although the market has corrected in the past two weeks, some stock groups absorbed the cash flow quite well, which shows that the market has differentiation and the cash flow is still looking for opportunities in specific codes with growth potential.

According to Nguyen The Minh, head of analysis at Yuanta Securities Vietnam Co, industrial zone real estate stocks recorded the strongest rise last week.

“I suppose that this group of stocks will continue to attract cash flow. However, the expected rate of return might be not as high as this group of stocks has increased sharply since the beginning of the year,” Minh said.

The group of industrial zone real estate stocks were on an upswing last week, including Sonadezi Corporation (SNZ) (+17 per cent), The Viet Nam Rubber Group (VRG) (+14 per cent),

Construction company Becamex IDC Corp (IDC) (+2.9 per cent), The Viet Nam Rubber Industry Group JSC (GVR) (+7.2 per cent) and Kinh Bac City Development Holding Corp (KBC) KBC (+2.3 per cent).

VNS

 
 

Other News

.
Transport economics to drive Vietnam’s urban development
Transport economics to drive Vietnam’s urban development
BUSINESSicon  15/02/2021 

Transport projects are expected to improve overall accessibility and reduce transportation costs, in turn increase economic productivity and development.

Seafood industry expects to remain on growth path in 2021
Seafood industry expects to remain on growth path in 2021
BUSINESSicon  15/02/2021 

Despite facing difficulties due to the COVID-19 pandemic, seafood exports last year were estimated at US$8.58 billion, the same as in 2019.

Rice exports enjoy opportunities for breakthrough in 2021
Rice exports enjoy opportunities for breakthrough in 2021
BUSINESSicon  15/02/2021 

High hopes are pinned on Vietnam’s rice exports in 2021 when major export markets such as the Philippines and Africa continue to sign contracts to buy rice from Vietnam, 

Opportunities forecast for Vietnam’s economy in 2021: experts
Opportunities forecast for Vietnam’s economy in 2021: experts
BUSINESSicon  15/02/2021 

Apart from challenges, many opportunities will be offered to the Vietnamese economy in 2021, experts have said.

Born in the Year of the Buffalo
Born in the Year of the Buffalo
BUSINESSicon  15/02/2021 

'Buffalo' represents hard work, persistence and stability in the Vietnamese people's conception, and these characteristics are considered to apply to people born in the Year of the Buffalo [according to eastern zodiac].

Modern trade channels, e-commerce to further thrive: experts
Modern trade channels, e-commerce to further thrive: experts
BUSINESSicon  15/02/2021 

Modern and online shopping channels recorded strong growth last year and will continue to thrive this year, according to experts.

What to invest in this year?
What to invest in this year?
BUSINESSicon  14/02/2021 

With uncertainties caused by COVID-19 persisting, gold, stock, and real estate are still promising investments for Vietnamese investors in 2021.

Door opens to growing level of FDI
Door opens to growing level of FDI
BUSINESSicon  14/02/2021 

Vietnam’s effective control over the COVID-19 pandemic along with it signing a host of new free trade agreements has resulted in many global tech giants shifting their investment to the country.

Quang Ninh looks to become a strong marine-based economic hub
Quang Ninh looks to become a strong marine-based economic hub
BUSINESSicon  13/02/2021 

The northern province of Quang Ninh has outlined key measures to develop its marine-based and coastal economy, with a focus on eco-friendly tourism, maritime services, and coastal industry.

Vietnam automobile industry on recovery path despite Covid-19
Vietnam automobile industry on recovery path despite Covid-19
BUSINESSicon  13/02/2021 

Vietnam’s rising income per capita would soon move cars from a luxury product with a passenger vehicle density of 34 per 1,000 to a more ordinary one with a density level comparable to countries in the region.

Real estate appeal remains amid tumult
Real estate appeal remains amid tumult
BUSINESSicon  13/02/2021 

Vietnam has more real estate investment opportunities than other more mature Asia-Pacific markets, though certain difficulties remain.

VIETNAM BUSINESS NEWS FEBRUARY 15
VIETNAM BUSINESS NEWS FEBRUARY 15
BUSINESSicon  15/02/2021 

VIETNAM BUSINESS NEWS

Vietnamese enterprises build resilience amid pandemic
Vietnamese enterprises build resilience amid pandemic
BUSINESSicon  14/02/2021 

Vietnam’s economy has undergone a lot of changes during one year since the first case of COVID-19 was detected in the country in January, 2020, 

VIETNAM BUSINESS NEWS FEBRUARY 13
VIETNAM BUSINESS NEWS FEBRUARY 13
BUSINESSicon  13/02/2021 

 Vietnam receives foreign cargo ships on first day of Lunar New Year

2021 bodes well for mechanical engineering
2021 bodes well for mechanical engineering
BUSINESSicon  14/02/2021 

After suffering a significant fall in revenue last year, the mechanical engineering industry has high hopes for recovery in 2021, given Vietnam’s good COVID-19 control and participation in free trade agreements.

Vietnam continues to move forward in 2021
Vietnam continues to move forward in 2021
BUSINESSicon  14/02/2021 

Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management, talks about Vietnam’s potential for economic development in 2021.

Domestic coffee exporters expect a promising year
Domestic coffee exporters expect a promising year
BUSINESSicon  13/02/2021 

Vietnam’s coffee exports are expected to have a good start to 2021 after a gloomy year due to the severe impacts from the COVID-19 pandemic, according to industry insiders.

2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
BUSINESSicon  12/02/2021 

The National Centre for Socio-Economic Information and Forecasting (NCIF) has released a forecast on Vietnam’s economic performance in 2021, with GDP growth of 6.72 percent and CPI of 4.2 percent under an optimistic scenario.

Silver lining found in investment channel risk this year
Silver lining found in investment channel risk this year
BUSINESSicon  12/02/2021 

Investors are pinning their hopes on different investment channels this year despite the many difficulties and risks brought about by COVID-19, analysts have said.

Construction firms urged to apply technology to improve efficiency
Construction firms urged to apply technology to improve efficiency
BUSINESSicon  11/02/2021 

The impacts of the COVID-19 pandemic and Industry 4.0 required construction firms to invest in technology to improve efficiency.

 
 
 
Leave your comment on an article

OR QUICK LOGIN