return icon Vietnamnet.vn

Vietnam stocks to keep falling on disease fears

 The Vietnamese stock market has been forecast to fall next week amid fears of coronavirus and a focus on pharmaceutical stocks.

 

{keywords}

A VPS Securities Co office. Vietnamese shares will return to action on Monday amid concerns related to diseases and movements in neighbouring markets. — Photo tinnhanhchungkhoan.vn

 

 

Viet Nam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange returned to action on Thursday after the one-week Tet (Lunar New Year).

However, market sentiment was dampened by fears of the potential breakout of the coronavirus. This also forced the Chinese market regulator to close the stock market until Monday.

Fears about the disease triggered large-scale sell-offs on the Chinese and Vietnamese markets. The VN-Index fell a total of 5.53 per cent on Thursday and Friday – the only two trading days of the post-Tet week – to end at 936.62 points.

The two-day decline also wiped out the entire growth the VN-Index during the three weeks prior to the national holiday.

On the Ha Noi Stock Exchange, the HNX-Index dropped nearly 3.70 per cent in two days to end last week at 102.36 points.

The sell-off on the Vietnamese market targeted many firms who depend fully or partly on trade and travel activities.

Those companies included dairy producer Vinamilk (VNM), steel producer Hoa Phat (HPG), aviation firms Vietnam Airlines (HVN) and Vietjet (VJC), airport operator ACV (ACV) and PetroVietnam Gas (GAS).

VNM, HVN and VJC plunged between 6.87 per cent and 7 per cent, while HPG and GAS lost 4.7 per cent and nearly 6 per cent.

According to securities firms, the short-term outlook for the Vietnamese stock market was poor, and further declines were expected.

The short-term and medium-term scenarios for the VN-Index were worsening, Bao Viet Securities Co (BVSC) said in a report.

The VN-Index may drop to 936 points, the company forecast, adding the benchmark could fall to 910-920 points if market did not improve.

BIDV Securities Co (BSC) said the movement of the Vietnamese stock market would depend on Chinese markets when they returned on Monday from the national break, but outlook was dim following reports of another bird flu breakout in China.

The diseases would weigh on market sentiment this week until good news was delivered to balance and support the indices, the company said.

Positive look

There are some positive signals investors may take amid the bad news.

Pharmaceutical stocks are rising as disease fears have boosted demand for healthcare products and services, thus lifting demand for shares.

Some big gainers in the pharmaceutical and healthcare sector were DHG Pharmaceutical JSC (DHG), Ha Tay Pharmaceutical JSC (DHT), Imexpharm Corporation (IPM) and Domesco Medical Import Export JSC (DMC), which rose between 6.4 per cent and 7.0 per cent on Friday.

In addition, high January CPI – an indicator showing the domestic purchasing power – meant consumer firms would profit in the first quarter as demand for goods increased sharply in the first month of the year. — VNS

Coronavirus likely to send local stock market crashing

Coronavirus likely to send local stock market crashing

A new strain of coronavirus that has emerged in the central Chinese city of Wuhan is expected to continue dampening investor sentiment, according to various reports.

MORE NEWS

Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

Organ trafficking in Vietnam driven by high demand, low rate of donation: experts

A conference on organ donation registration and the prevention of human organ and tissue trafficking was held on Monday.

VCCI proposes allowing businesses to set fuel retail prices

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.

VIETNAM NEWS HEADLINES FEBRUARY 8/2023

Vietnam puts children at centre of development policies, strategies: Ambassador

Gov’t issues action plan to realize Hanoi’s development vision until 2045

The Government has issued an action plan to realize Politburo’s resolution on the objectives for Hanoi’s development until 2030, with a vision to 2045.

Commercial sidewalk use may be charged by HCMC authorities

HCMC is planning to allow the paid use of sidewalks for commercial purposes such as vending goods or parking if these business activities leave a space of at least 1.5 meters wide for pedestrians.

CAAV advises caution when buying air tickets

The Civil Aviation Authority of Viet Nam (CAAV) has received feedback on the fact that passengers have to buy air tickets higher than the specified prices on domestic routes, especially during the peak of the Lunar New Year (Tet).

Prime Minister leaves Hanoi for official visits to Singapore, Brunei

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam left Hanoi at noon on February 8 for official visits to Singapore and Brunei from February 8-11.

US war veteran wishing to return wartime diary to Vietnamese family

Pater Mathews, a US war veteran, has emailed relevant agencies of Ha Tinh province, central Vietnam, expressing his desire to fly to Vietnam and return a Vietnamese martyr’s diary he came across decades ago to the martyr’s family.

VIETNAM BUSINESS NEWS FEBRUARY 8/2023

January payment transactions via national public service portal valued at 11.8 mln USD

Vietnam needs new products, services to reach tourism targets

To realise the targets of attracting 110 million tourists and earning some 650 trillion VND (27.5 billion USD) in revenue this year, Vietnam is recommended to develop more products and services to offer new experiences to visitors.

PM Chinh’s Singapore visit expected to advance bilateral trade ties

Prime Minister Pham Minh Chinh’s Singapore visit from February 8-10 aims to affirm the determination to elevate the bilateral economic ties to a new height in the context of many free trade agreement (FTAs) coming into force.
back_to_top