Vn-Index predicted to hit all-time high of 1,300 pts in April

Strong involvement of individual investors and participation of new foreign fund would help offset the net selling trend of foreign investors.

Vietnam’s benchmark Vn-Index could reach its all-time high of 1,300 points in April, with new foreign cash flows and domestic individuals as key market drivers.

The new capital inflow would help offset the net selling trend of foreign investors, said the Viet Dragon Securities Company (VDSC) in its monthly report.

According to the VDSC, the stock market in April will maintain their upward movement from March, with the Vn-Index ending the month with a gain of 1.23% month-on-month to 1,191.44.

“Capital inflow pumped by foreign funds and domestic investors, along with positive business performance outlook in banking stocks are two main catalysts. However, inherent risk would be the unsolved issue of overloaded trading system in short-term,” stated the report.

In the past year, foreign investors maintained net selling position with large value of VND29.3 trillion (US$1.27 billion).

“However, we did not recognize it as considerable risk thanks to the strong involvement of individual investors and participation of new foreign fund,” stated the VDSC.

On March, the new ETFs from Taiwan - Fubon FTSE Vietnam ETF by Fubon Financial Holdings was established. A few days later, Fubon FTSE Vietnam ETF conducted an IPO and raised TWD5.28 billion (US$185.3 million), while planning to mobilize further TWD10 billion (US$350.8 million) to invest in Vietnam stocks.

As this fund uses the base of FTSE Vietnam 30 Index, it is expected to supplement new inflows to VN30 group and possibly uplift the market, said the VDSC.

 

Banks to serve as main driving force supporting the market in April

VDSC’s report predicted the growth of bank’s profit-before-tax (PBT) to be 26% in 2021. The performance of the banking sector in the first quarter was even more optimistic with the three-digit growth of 115% in PBT thanks to the contribution of non-interest income, and negative growth in provision costs.

“Therefore, VN-Index would be likely to go further with the force from banking stocks,“ it added.

In April, one significant event will be the review of ETFs benchmarked VN30, VN Finlead and VN Diamond. In this restructuring period, banking stocks including ACB, EIB, MSB and VIB are expected to benefit from VN Diamond ETF Fund's cash flow when they meet the conditions to be added to the index basket.

 Local investors at a securities center in Hanoi. Photo: Viet Linh

Picky approach is prioritized when VN-Index surpassed 1,200 points

After the end of annual general meeting (AGM) season, market would fall into “information scarcity” time. Therefore, the driving force of the market in the end of April and May may not be the same and the market could be subject to correction, especially when the issue of trading system has not been fully solved.

The report urged investors to adopt a bottom-up approach and focus on stocks having “better than expected result” in 2021.

At the close today [April 6], the Vn-Index rose by 0.32% or 3.91 points to 1,239.96, with foreign investors being net buyers of VND21 billion (US$910,000) on the market.

Hanoitimes

Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021

Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.

 
 

Other News

.
Vietnam to attract more foreign investment in high-tech industry
Vietnam to attract more foreign investment in high-tech industry
BUSINESSicon  08/04/2021 

Vietnam will lure more foreign investment in the high-tech industry by offering more incentives and amending requirements for high-tech businesses.

VIETNAM BUSINESS NEWS APRIL 7
VIETNAM BUSINESS NEWS APRIL 7
BUSINESSicon  07/04/2021 

Digital banking - A new era for Vietnam’s banking industry

Young farmer earns billions of VND a year from rabbit exports to Japan
Young farmer earns billions of VND a year from rabbit exports to Japan
BUSINESSicon  07/04/2021 

After many years raising rabbits, Do Quoc Toan, a farmer in Dan Phuong district in Hanoi, has reaped fruit. His rabbit farm brings revenue of over VND1 billion a year.

Bank assets soar as shares are 'hot'
Bank assets soar as shares are 'hot'
BUSINESSicon  07/04/2021 

Encouraged by the prosperity gained in 2020, the biggest commercial banks in Vietnam target making a profit of VND1 billion this year.

Forbes names six Vietnamese billionaires in latest rich list
Forbes names six Vietnamese billionaires in latest rich list
BUSINESSicon  07/04/2021 

Globally-renowned business magazine Forbes has just released its annual list of the world’s billionaires, including six billionaires from Vietnam.

Vietnam will have national portal on product traceability this year
Vietnam will have national portal on product traceability this year
BUSINESSicon  07/04/2021 

A national portal on tracing the origin of products and goods is expected to be put into operation in the fourth quarter of this year, according to the Directorate for Standards, Metrology and Quality (DSMQ).

Foreign investments might flow into Vietnam's stock market from the second half of 2021
Foreign investments might flow into Vietnam's stock market from the second half of 2021
BUSINESSicon  07/04/2021 

Bao Viet Securities Company (BVS) expects Vietnam's stock market might attract up to US$1.4 billion from index tracking funds, if Vietnam is officially upgraded to a secondary emerging market by FTSE.

Airlines await “vaccine passports” for resumption of international flights
Airlines await “vaccine passports” for resumption of international flights
BUSINESSicon  07/04/2021 

Although “vaccine passports” are yet to become official, airlines are nonetheless preparing for the resumption of international flights based on their introduction.

Investors of renewable energy projects to be chosen through bidding
Investors of renewable energy projects to be chosen through bidding
BUSINESSicon  07/04/2021 

Investors of renewable energy development projects will be chosen through competitive tenders and they will set the minimum selling price of the output of their projects.

Thousands of hectares of industrial zones approved in first quarter
Thousands of hectares of industrial zones approved in first quarter
BUSINESSicon  07/04/2021 

Dozens of industrial zone projects in 13 cities and provinces covering have been approved in the first quarter, promising thousands of hectares of new space for investors over the coming years.

HCM City approves 8 projects to boost industry, trading, e-commerce, exports
HCM City approves 8 projects to boost industry, trading, e-commerce, exports
BUSINESSicon  07/04/2021 

The HCM City Department of Industry and Trade said eight key projects have been approved by the city government to promote the industry, trading, e-commerce, and exports and facilitate goods transport.

VIETNAM BUSINESS NEWS APRIL 6
VIETNAM BUSINESS NEWS APRIL 6
BUSINESSicon  06/04/2021 

Vietnamese fruit and vegetable sector targets export revenue of $10 billion

Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
BUSINESSicon  06/04/2021 

Korean conglomerate SK Group said it will make a strategic investment in VinCommerce, Vietnam’s largest retailer, to tap into the fast-growing e-commerce segment in the Southeast Asian market, reported Yonhap News Agency.

Wind power: investors wait for PM’s decision on Feed-in-Tariff price
Wind power: investors wait for PM’s decision on Feed-in-Tariff price
FEATUREicon  06/04/2021 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

Inflation not a source of concern for Vietnam: SSI
Inflation not a source of concern for Vietnam: SSI
BUSINESSicon  06/04/2021 

Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.

Shares gain on bank and real estate stocks
Shares gain on bank and real estate stocks
BUSINESSicon  06/04/2021 

The market closed higher on Monday as a series of banking and real estate stocks surged, propelling the indices.

Vuong leaves Vinmart, Quang takes over
Vuong leaves Vinmart, Quang takes over
BUSINESSicon  05/04/2021 

Billionaire Nguyen Dang Quang will build The CrownX into a $10 billion firm and change the name of VinMart to WinMart, which will follow a new operation model after Vingroup, owned by Pham Nhat Vuong, leaves.

VIETNAM BUSINESS NEWS APRIL 5
VIETNAM BUSINESS NEWS APRIL 5
BUSINESSicon  05/04/2021 

Manufacturing, processing maintains strong growth in Q1

Prices surge on stock market, VN Index reaches record high
Prices surge on stock market, VN Index reaches record high
FEATUREicon  05/04/2021 

Many new investors have made high profits after the stock market reached a record high.

Capital market must work to invigorate SOEs
Capital market must work to invigorate SOEs
BUSINESSicon  05/04/2021 

Developing the capital market will help in promoting State Owned Enterprises (SOEs) to mobilize capital and reduce the proportion of commercial credit loans, and diversify in forms of mobilization to supplement capital.

 
 
 
Leave your comment on an article

OR QUICK LOGIN