Warning for VN stocks after new infection reports

The Vietnamese stock market would struggle to hold on to its threshold as analysts are afraid the market sentiment could worsen after new coronavirus-infected cases were reported over the weekend.

Warning for VN stocks after new infection reports

An investor watches share prices on a screen at Saigon Securities Inc. The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained a total of 1.05 per cent last week.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained a total of 1.05 per cent to end last week at 891.44 points.

The HNX-Index on the Ha Noi Stock Exchange jumped nearly 4.03 per cent during the week to end at 113.66 points.

The market grew strongly as investors aimed to pick up the stocks that had dropped sharply since the market returned from Tet holiday on January 30.

Prior to last week, the VN-Index had lost a total of more than 11 per cent while the HNX-Index had gained a total of 3.10 per cent.

Fears about the coronavirus, named COVID-19, and its impact on the global economy dampened investors’ confidence in risky assets such as stocks.

Investors around the globe tried to offload their ownership in listed companies and looked for shelter in safe havens such as gold and government bonds.

But the decline of local markets brought Vietnamese shares back down to cheaper levels and encouraged investors to start buying.

According to analysts, the average price-to-earnings per share (P/E) ratio among Vietnamese shares has fallen to 13x from more than 16x recorded before Tet.

The 13x ratio is equal to the ratio recorded in 2016 when the VN-Index was around 600 points.

That means Vietnamese shares have got cheaper than they were before the national holiday and that lured investors back last week.

Analyst Nguyen Huu Binh told tinnhanhchungkhoan.vn that local stocks had been pushed down to their low levels.

“This is a real big chance for investors with a taste for long-term holding,” he said.

But last week recovery may be disrupted and short-lived as Viet Nam over the weekend reported new COVID-19 infected cases.

The Ministry of Health on Sunday reported nine more cases, raising the total number of virus infections to 30, after the number had stood at 16 for two weeks.

Nguyen Trung Du, director of investment department at VNDirect Securities Corp, said the worldwide developments of the coronavirus would still weigh on the market sentiment.

“The market sentiment would be unpredictable in the coming week after latest case updates,” he said.

“It’s difficult to count on a strong rebound for local stocks at the moment. We would be lucky if the market would just go sideways or avoid a dive in the coming days.”

Analyst Binh said the latest update of infection cases might make the market move in a negative channel this week.

“People panicked after the number of new cases was updated. Investors’ confidence would be hit hard and they could only calm down if positive news is released,” the analyst said.

Smaller stocks targeted

 

Small-cap and mid-cap stocks have gained strongly in recent weeks while large-caps are being weighed down by strong selling.

When the market goes negative and opportunities fade in the large-caps, investors tend to turn attention to smaller stocks, which has been normal for the last few years, analyst Du at VNDirect Securities said.

“It could be risky for the market as a positive market would be made of blue chips, in which institutional investors are present and their investment decisions would give directions for the whole market,” he said.

Phan Dung Khanh, director of investment department at Maybank Kim Eng Securities Co, said it is normal for small-cap stocks to have comparatively strong growth compared to large-caps.

“If the market conditions turn bad, investors would look into other investment channels. If they still stay on the stock market, penny stocks would be targeted for low prices and they are suitable for quick trade,” he said. 

Vietnamese shares plunge on mounting investor fears
 

Warning for VN stocks after new infection reports

The VN-Index on the Ho Chi Minh Stock Exchange plummeted 5.79 per cent to close the morning trade at 839.85 points. Photo cafef.vn

Vietnamese shares plunged on Monday morning, in line with the global downturn, as the spread of the novel coronavirus (COVID-19) worsened around the world outside China, sending investors to safe-haven assets like gold.

The VN-Index on the Ho Chi Minh Stock Exchange plummeted 5.79 per cent to close the morning trade at 839.85 points.

On the Ha Noi Stock Exchange, the HNX-Index gave up 6.12 per cent to 106.69 points.

Across Asia, major stock indices also witnessed a crash with Japan’s Nikkei losing 5.7 per cent, South Korea’s Kospi down more than 4 per cent, China’s Hang Seng down 3.5 per cent and Australia’s S&P/ASX plunging more than 6 per cent.

Nearly 110,000 people have been diagnosed with the virus, with the number of deaths topping more than 3,800 globally. The number of infected people in Viet Nam also increased to 30 yesterday, rattling nerves of investors.

All 30 largest shares by market value and liquidity on the Ho Chi Minh Stock Exchange lost value, 12 of them dropped by the daily maximum of 7 per cent.

Oil prices nose-dived 30 per cent on Monday after the collapse of OPEC’s supply cut agreement with Russia also weighing on local shares of energy companies.

PV Gas, PetroVietnam Drilling & Wells Service (PVD) and Petrolimex all lost 7 per cent while PV Power slipped 6.8 per cent.

Liquidity remained good with 278 million shares worth VND5 trillion (US$214.6 million) being traded in the two markets in the morning.

Meanwhile, prices of gold continued to be high, around VND46.8 million and VND47.5 million ($2,008-2,039) per tael this morning.

The afternoon trade starts at 1pm. — VNS

Market regulator agrees on financial leveraging for UPCoM stocks

Market regulator agrees on financial leveraging for UPCoM stocks

Margin lending may be allowed on the Unlisted Pubic Company Market (UPCoM), the State Securities Commission (SSC) vice chairman Pham Hong Son said on Wednesday.  

Coronavirus panic: Why are people stockpiling toilet paper?

Coronavirus panic: Why are people stockpiling toilet paper?

Loo roll has become the top "panic buy" item in several countries after coronavirus fears.

 
 

Other News

.
HCM City’s housing industry faces difficulties
HCM City’s housing industry faces difficulties
BUSINESSicon  29/06/2020 

The property industry in Ho Chi Minh City, and in fact the country in general, faces several problems that need urgent solutions, especially with regard to legal provisions.

Vietnam slashes auto registration fee by half
Vietnam slashes auto registration fee by half
BUSINESSicon  28/06/2020 

Prime Minister Nguyen Xuan Phuc has just signed Decree 70 allowing the cut of 50% of the registration fee for customers who buy locally-produced and assembled automobiles, effective June 28.

Vietnam’s logistics industry hit hard by Covid-19 pandemic
Vietnam’s logistics industry hit hard by Covid-19 pandemic
BUSINESSicon  28/06/2020 

The Vietnamese logistics industry is among those hit the hardest by Covid-19, as the unpredictability and duration of the pandemic have presented multiple challenges in both the short and long terms, 

Major businesses undergo slow recovery after Covid-19
Major businesses undergo slow recovery after Covid-19
FEATUREicon  28/06/2020 

Despite the positive business results witnessed in the early months of the year, many listed companies have been cautious with their pre-tax profit targets.

Limit on capacity continues to hinder solar panel installation
Limit on capacity continues to hinder solar panel installation
BUSINESSicon  28/06/2020 

With the rising prices of electricity pushing many enterprises and households to install rooftop solar panels that partly help reduce electricity bills, the cap on solar power capacity is hindering the process.

Petrolimex pushes for PGBank-HDBank merger before Aug 31
Petrolimex pushes for PGBank-HDBank merger before Aug 31
BUSINESSicon  27/06/2020 

Petrolimex, which holds a 40% stake in the Petrolimex Group Commercial Bank (PGBank), sought to complete the merger between PGBank and the HCMC Development Bank before August 31, said the Vnexpress website.

Energy revolution
Energy revolution
BUSINESSicon  28/06/2020 

The first solar panel, which was invented by French physician Alexandre Edmond Becquerel in 1839, has become a significant watershed for the energy sector in the future. 

FDI inflows drop 15.1 percent year on year in first half
FDI inflows drop 15.1 percent year on year in first half
BUSINESSicon  27/06/2020 

Vietnam recorded a year-on-year decrease of 15.1 percent in foreign direct investment (FDI) inflows to 15.67 billion USD as of June 20, according to the Ministry of Planning and Investment (MPI).

WB debars Vietnamese firm for collusive and fraudulent practices
WB debars Vietnamese firm for collusive and fraudulent practices
BUSINESSicon  27/06/2020 

The World Bank Group has announced the seven-year debarment of Vietnam-based Sao Bac Dau Technologies Corporation (SBD) in connection with collusive and fraudulent practices under the Danang Sustainable City Development Project

The worst is yet to come for Vietnam's tourism
The worst is yet to come for Vietnam's tourism
BUSINESSicon  28/06/2020 

Vietnam may have seen an over 50% decline in the number of tourist arrivals over the past five months due to Covid-19 but the situation is only expected to worsen, as the crisis has been forecast to reach its peak in the next few months, 

Coca-Cola suspends social media advertising despite Facebook changes
Coca-Cola suspends social media advertising despite Facebook changes
BUSINESSicon  27/06/2020 

The company condemns racism and seeks more accountability from Facebook and other platforms.

Hanoi attracts US$17.6 billion for 229 projects
Hanoi attracts US$17.6 billion for 229 projects
BUSINESSicon  27/06/2020 

Hanoi is going to present investment certificates for 229 projects with a total value of US$17.6 billion and sign 38 memoranda of understanding worth a combined US$28.6 billion, according to the Tuoi Tre Online website.

Vietnam prepares to resume international flights
Vietnam prepares to resume international flights
BUSINESSicon  27/06/2020 

It is still unclear when Vietnam will reactivate international flights and reopen its market to foreign travelers, but agencies and travel firms all are making hectic preparations.

Vietnamese businesses burdened with taxes, FIEs at ease with tax exemptions
Vietnamese businesses burdened with taxes, FIEs at ease with tax exemptions
BUSINESSicon  29/06/2020 

Studies have found that Vietnam’s taxation system offers many incentives to foreign invested enterprises (FIEs), but puts an increasingly heavy burden on Vietnamese enterprises and people.

Banks’ support desired for mobile payments
Banks’ support desired for mobile payments
BUSINESSicon  26/06/2020 

New approaches, especially regarding activities of banks, are required to boost the reach of mobile money agents and expand financial inclusion in Vietnam.

Authorities get to grips with new bad debt mountain
Authorities get to grips with new bad debt mountain
BUSINESSicon  27/06/2020 

A spike in the amount of bad loans sitting in banks’ books has triggered Vietnamese authorities to seek new paths to recovery,

Debt limit to be adhered to despite bumps in road
Debt limit to be adhered to despite bumps in road
BUSINESSicon  26/06/2020 

In spite of a dent in state budget revenue and a rise in spending this year causing a big fiscal deficit, the government will be able to retain the country’s public debt situation, ensuring national financial security.

Coronavirus: Qantas to axe 6,000 jobs due to pandemic
Coronavirus: Qantas to axe 6,000 jobs due to pandemic
BUSINESSicon  26/06/2020 

The airline says the collapse in billions of dollars of travel revenue means it has "little choice".

Bayer to pay $10.9bn to settle weedkiller cancer claims
Bayer to pay $10.9bn to settle weedkiller cancer claims
BUSINESSicon  26/06/2020 

The chemical giant is settling almost 100,000 US lawsuits from users of its popular Roundup herbicide.

Olympus quits camera business after 84 years
Olympus quits camera business after 84 years
BUSINESSicon  26/06/2020 

Once a huge camera-maker, it is looking to carve off that part of its business and focus elsewhere.

 
 
 
Leave your comment on an article

OR QUICK LOGIN