The key interest rate hike by the State Bank of Vietnam following the U.S. Federal Reserve’s move has taken a toll on the stock market. Specifically, the central bank’s decision to raise interest rate caps on short-term deposits has prompted commercial banks to increase savings rates. The move would lead to capital flow into the stock market dwindling.

Sao Mai Group, under the code ASM, on September 22 announced to cancel its plan to issue over 168 million shares due to the bearish market. ASM closed the session on the same day at VND17,250, down 32% against its highest price in late March.

Similarly, Louis Capital JSC on September 23 held an extraordinary meeting to announce that it would stop issuing some 55 million shares, explaining that the current situation did not back the plan.

Despite keeping its share issue intact, Development Investment Construction JSC, with the code DIG, has lowered the selling price and volume twice.

Thai Nguyen International Hospital JSC is set to announce changes to its plans to issue shares to its shareholders at its extraordinary shareholders meeting on October 10.

Under its new capital mobilization plan, the hospital will issue some 26 million shares to its current shareholders at VND20,000 per share, half the price on bourse.

In addition, Kien Giang Construction Investment Consultancy Group has decided to ditch its plan to sell 13.4 million CKG shares.

The Vietnamese stock market is forecast to remain choppy for the rest of the year due to China’s zero-Covid policy, global inflation, a potential economic recession facing the United States and the European Union and the rapid pace in interest rate hikes at central banks worldwide, according to a recent report released by KB Securities Vietnam.

Source: SGT