Securities companies have launched many support packages and incentives to retain investors while waiting for state management agencies to apply measures to revive the stock market.
The Ministry of Planning and Investment has (MPI) lowered its predicted GDP growth rate to 6.2 percent from 6.6 percent because of the spread of Covid-19.
The agency also predicted that the GDP in Q1 would decrease sharply to 4.9 percent because of the stagnation in production and tourism, the mildest growth rate since Q1 2013.
The VN Index has fallen dramatically. The index fell to the 880 point threshold, the lowest level since October 2017 and hundreds of trillion of dong worth of capitalization value were wiped out.
Meanwhile, foreign investors continue to sell. Their net sale has reached VND3 trillion so far this year.
Domestic investors suffered the most. They experienced a tough 2019 and have become even more pessimistic, rushing to sell stocks and depositing money at banks or hoarding gold.
|Securities companies have launched many support packages and incentives to retain investors while waiting for state management agencies to apply measures to revive the stock market.|
The Vietnam Association of Securities Business (VASB) commented that Covid-19 is having negative impact on the stock market.
It is planning to ask state management agencies to reduce fees and taxes, which will allowi' securities companies to increase support for their clients.
While waiting for state agencies to take necessary measures to support the stock market and investors, securities companies have taken initiative in launching a series of policies to support investors and encourage them to join the market.
SSI, for example, has launched a VND2 trillion package, offering 9 percent interest rate to clients with margin debt in early March.
Mirae Asset Vietnam has launched a program offering the preferential margin interest rate of 9.5-9.9 percent. The interest rates will be applied from early March to June 30.
AIS has also announced the reduction of margin interest rate since March 1, from 9.5 percent to 9 percent. Meanwhile, KB Vietnam is also fixing the margin interest rate at 9 percent per annum.
Other securities companies, including Pinetree, VPS, FPT Securities and Kien Thiet Securities, are exempting transaction fees for investors.
VPS is running a promotion program for the investors in derivatives. From March 1 to December 31, foreign and domestic investors trading derivative securities at VPS will have opportunities to win prizes – 10 taels of SJC gold for monthly first prize winners and a Mercedes C180 for the first prize of the year.
BIDV Securities has called on investors to keep calm, saying that though Covid-19 has affected the national economy, the comprehensive solutions applied by the government will have a positive impact on the stock market soon.
The Vietnamese stock market had a tough time throughout February with most stocks weakening amid concern about the global spread of the coronavirus disease(COVID-19).
It is expected the Vietnamese stock market will be less volatile in March compared to the previous months.