return icon

VN expects volatility over profits, oil prices

Vietnam's stock markets may face strong fluctuations this week as investors show concern over global oil prices and the drive for short profits from stocks that saw big jumps this week, brokerage firms wrote in their weekly reports.
Viet Nam's stock markets may face strong fluctuations this week as investors show concern over global oil prices and the drive for short profits from stocks that saw big jumps this week, brokerage firms wrote in their weekly reports.

Vietnamese shares were mixed on Friday, ending the first trading week higher after the Tet holiday. The benchmark VN Index on the HCM Stock Exchange rose 0.3 per cent to close at 554.03 points, rising 1.7 per cent from the previous trading week.

Also, the HNX Index on the Ha Noi Stock Exchange inched down 0.2 per cent on Friday to close last week at 77.81 points, however, it rose 1.2 per cent during the week.

Meanwhile, global oil prices continued to show their volatility as the US benchmark West Texas Intermediate (WTI) crude and London-traded Brent crude declined 3.7 per cent each on Friday, to close last week's trading at US$29.64 and $33.01 per barrel, respectively, after the US reported on Thursday that its crude reserves had reached a record level not seen since 1930.

However, they also saw gains over the previous trading week. WTI rose slightly, by 0.7 per cent from one week ago and 13 per cent from its twelve-year low. Also, Brent crude fell 1 per cent from the previous week, but has gained 9.8 per cent in the last six sessions.

Recent gains in global crude prices were attributed to an agreement reached between Russia and Saudi Arabia on a production freeze to improve prices, as well as Iran showing its support for the agreement.

However, the volatility of oil prices remained a problem for investors as Iran, on Thursday, announced it will maintain oil production output to win back market share, after the country had trade sanctions removed last month.

The upward trend in oil prices last week helped boost local energy stocks, including PetroVietnam Gas Corporation (GAS), PetroVietnam Drilling and Well Service Corporation (PVD) and PetroVietnam Technical Service Corporation (PVS), which rose 12 per cent, 11 per cent and 7.7 per cent in the first trading week after the Tet holiday. However, these stocks may decline this week if investors seek profits from their gains.

In addition, the stock markets may also face strong selling from investors, as they seek profits from those firms that made significant gains last week, including banks, which saw gains on a weaker Vietnamese dong and better business performances for last year, compared to 2014.

Last week, Viet Nam's central bank raised the reference mid-point rate for its exchange trading band by VND39 to VND21,900 per US dollar, which was considered to be a move to help avoid speculation over dollars in the unofficial market.

Among gainers, the Bank for Investment and Development of Vietnam (BID) rose 0.6 per cent, Sai Gon-Ha Noi Bank (SHB) added 3 per cent and Military Bank (MBB) jumped 5.4 per cent. MBB also attracted investor attention after it officially raised foreign ownership by 10 to 20 per cent on Friday.

Other large-cap stocks also had a good week, but they face profit-takings from investors. Among these stocks, dairy firm Vinamilk (VNM) rose 4 per cent during the week, after the company announced it will buy back more than 400,000 shares to provide bonuses to 12 high-ranking executives in the company, BIDV Insurance Corporation (BIC) surged 15.4 per cent after it announced it would allow more foreign ownership, and Binh Minh Plastic JSC (BMP) gained 4.9 per cent after earning higher profits last year, compared to 2014.

Of note, market liquidity advanced last week from the trading week's figures recorded before the Tet holiday. Both local bourses traded more than 161.7 million shares, worth VND2.37 trillion ($105.6 million), an increase of 42 per cent in trading volume and 50 per cent in trading value from the previous week. 



Trade Ministry signs cooperation deal with world leading fair organiser

The Trade Promotion Agency of Vietnam signed a memorandum of understanding with Messe Frankfurk Group on cooperation in trade promotion.

Over 500 individuals implicated in vehicle registration irregularities

Charges have been filed against 506 suspects for their alleged involvement in irregularities at multiple auto registration and inspection centers in the country, the Ministry of Public Security (MPS) said at a Government press conference.

Most of Vietnam’s outbound investments flow into Singapore in Q1

Vietnamese investors have injected nearly US$120 million into their projects overseas in the year to date, a sharp drop against the year-ago period, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Millions of mobile phone numbers in Vietnam to be locked soon

After March 31, the owners of nearly two million mobile phone numbers cannot make calls or send text messages as their user data stored by telecom providers does not match the national population database.

Global minimum tax rate to impact FDI firms in Vietnam

At least 1,015 foreign direct investment (FDI) enterprises will be affected by the global minimum corporate tax when this policy comes into force early next year.


VN central bank to cut refinance rate in next quarter: UOB

Feature film shot in Vietnam to be released on Netflix

Beautiful scenes of Vietnam and its people can be seen in the first official trailer of the movie "Tourist's Guide to Love".

Vietnamese badminton stars leap up world rankings

Several of the nation’s top badminton players have made significant jumps in the world rankings, according to the latest information given by the Badminton World Federation (BWF).

Paintings by local contemporary artists exhibited in UK

An exhibition displaying artworks from leading contemporary Vietnamese artists opened on May 29 at D-Contemporary gallery in Mayfair, one of London's premier shopping and entertainment centres.

Da Nang’s boat race attracts locals, tourists

Thousands of people and tourists stood on both sides of the Han River to cheer for teams participating in Da Nang’s boat race 2023, which took place on the morning of March 29.

VN central bank calls for prioritising loans for rice industry

The State Bank of Vietnam (SBV) has instructed credit institutions in the Mekong Delta region to promote lending to rice producers and traders to help them have sufficient capital, especially in the winter-spring harvest in 2023.

Around 60,000 firms close in first quarter

Roughly 60,000 Vietnamese enterprises closed their doors in the first three months of this year, representing an on-year increase of 17.4 percent.

Green offices remain key theme in HCM City commercial real estate

A flight to quality will remain a key theme in the HCM City office market in 2023 as both foreign and domestic companies are setting ambitious net-zero targets to comply with environmental, social and corporate governance (ESG) regulations.

Vietnam expected to export 7 million tonnes of rice this year: Ministry

Vietnam is expected to ship about 6.5-7 million tonnes of rice abroad this year thanks to the return of markets like Indonesia, Bangladesh, and China, according to the Ministry of Industry and Trade (MoIT).

Action plan approved to implement foreign investment cooperation strategy

Deputy Prime Minister Tran Luu Quang has freshly signed a decision to approve an action plan for implementing the 2021-2030 national foreign investment cooperation strategy.