Latest news with #KRX
Yahoo
29-05-2025
- Business
- Yahoo
DA Davidson Lowers Price Target on First Citizens BancShares, Keeps Neutral Rating
On May 29, DA Davidson lowered its price target for First Citizens BancShares, Inc. (NASDAQ:FCNCA) from $2,100 to $2,050 while keeping a Neutral rating. The change is due to expected declines in net interest income (NII) and net interest margin (NIM) despite strong loan and deposit growth. A business executive confidently presenting a financial research report to a boardroom. Kevin Fitzsimmons, an analyst at DA Davidson noted that First Citizens could see more balance sheet and fee growth if capital markets activity increases. They may benefit from high interest rates due to its asset sensitivity. However, lower expected earnings per share (EPS) signal challenges. The stock has dropped 1% compared to the KRX index since the last earnings report, down 6% year-to-date, but gained 39% in 2024. DA Davidson also adjusted expectations for the bank's share buyback program, now anticipating First Citizens will reach its CET1 capital ratio target (10.5%-11%) by Q1 2026, slightly later than previously expected. The Neutral rating signals caution due to potential rate cuts and economic uncertainties, which could limit further stock growth. First Citizens BancShares, Inc. is the parent company of First-Citizens Bank & Trust, offering banking services in the U.S. and internationally. It provides individuals, businesses, and professionals with checking, savings, and loan options. The bank offers loans for construction, businesses, mortgages, and personal needs, along with wealth management services, including investment advice, trust management, and insurance. It also provides leasing and financing solutions for railcars and locomotives. Customers can access services online, via mobile apps, or at branch locations. While we acknowledge the potential of First Citizens BancShares, Inc. (NASDAQ:FCNCA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FCNCA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
The Star
09-05-2025
- Business
- The Star
Stock market upgrade expected by September
Regulatory push: A man walks past the Hanoi Stock Exchange. The government's determination to elevate the country's stock market is evident, with clear political will demonstrated in various regulatory meetings. — Reuters HANOI: Vietnam's stock market is on the brink of a significant transformation, with expectations mounting for an upgrade to emerging market status by September. This ambitious goal was emphasised at the regular government press conference on Tuesday by Deputy Finance Minister Tran Quoc Phuong, who noted that the government is committed to achieving this milestone through a series of strategic initiatives. The Finance Ministry (MoF) is actively implementing a comprehensive plan to enhance market capabilities and meet the stringent criteria set by international rating agencies such as FTSE Russell and MSCI. While Vietnam has largely satisfied the necessary technical criteria, challenges remain in gaining the confidence of foreign investors and ensuring a transparent and accessible investment environment. 'However, this is merely a necessary condition. 'The sufficient condition hinges on the remaining processes and foreign investors' assessments of investment activities within the Vietnamese stock market,' Phuong said. To address these challenges, the ministry has outlined six major strategic actions aimed at bolstering investor trust and facilitating the upgrade process. Key among these initiatives is the effective deployment of the KRX system, a new technology platform designed to improve trading efficiency and risk management for foreign investors. This system introduces advanced features for transaction processing and payment, streamlining the investment process. Additionally, recent regulatory changes have removed significant barriers by allowing foreign institutional investors to place buy orders without requiring full upfront funds. This reform is anticipated to enhance investment fluidity and attract more foreign capital. The MoF is also reviewing and amending Decree 155 to clarify the timelines for public companies to report their foreign ownership limits, thereby increasing transparency for market participants. Simplifying the procedures for opening indirect investment accounts is another focus, with the ministry collaborating with the State Bank of Vietnam to facilitate foreign capital inflows. Furthermore, the introduction of omnibus trading accounts for foreign funds is set to simplify transaction processes, allowing fund managers to execute trades on behalf of multiple portfolios simultaneously. This innovation aims to enhance operational efficiency for foreign institutional investors. In addition to regulatory reforms, the ministry is focused on increasing the supply of financial products and improving the listing process for companies after their initial public offerings. Developing new investment indices will also provide more benchmarks for fund managers, further enriching the investment landscape. To ensure ongoing dialogue between regulators and market participants, a policy dialogue group will be established, comprising representatives from the State Securities Commission, investment funds, and securities firms. This group will facilitate timely discussions on market needs and regulatory responses, a step many experts believe is crucial to making policy more responsive. Despite the progress made, Vietnam's path to achieving emerging market status is fraught with challenges. FTSE Russell's recent report classified Vietnam as a frontier market, citing concerns about payment systems and market accessibility. However, the introduction of non-pre-funding models for foreign investors has been recognised as a positive development, indicating that improvements are underway. The government's determination to elevate Vietnam's stock market is evident, with clear political will demonstrated in various regulatory meetings. As the September deadline approaches, the financial community is hopeful that these efforts will culminate in a successful upgrade, positioning Vietnam as a premier investment destination in the region. — Viet Nam News/ANN
The Star
05-05-2025
- Business
- The Star
Main Vietnam stock exchange launches long-awaited trading system
This picture taken on May 28, 2012 shows Vietnamese workers walking past the Stock Exchange building in Ho Chi Minh City. - AFP HANOI: Vietnam's Ho Chi Minh Stock Exchange officially launched its new trading system on Monday (May 5), as the country pushes to unlock emerging market status and boost foreign investment. The new system, known as KRX from Korea Exchange, is expected to shorten the settlement cycle and increase trading capacity, according to an earlier statement from the State Securities Commission. "The new system will establish the foundation for a central clearing counterparty system," said Nguyen The Minh, head of research at Yuanta Securities Vietnam. Both the MSCI and FTSE indices currently classify Vietnam as a frontier market, which prevents many funds, family offices, and others from investing in companies listed there. FTSE will hold its next regular review in September. Vietnam has been on FTSE's watchlist for a possible upgrade since 2018. Vietnam's benchmark stock index rose slightly on Monday morning, reaching 1,232 as of 0243 GMT. Last November, Vietnam removed a requirement for overseas investors to fully prefund equity trades, one of the longstanding barriers to its potential upgrade. The KRX had faced multiple delays due to regulatory and technical roadblocks. "KRX can enhance market liquidity and pave the way for the launch of other new financial products including day trading, short-selling and derivatives, which will better benefit investors," Minh said. According to Minh, the system has been functioning properly so far, but it may take investors some time to get accustomed to it. - Reuters
Business Times
05-05-2025
- Business
- Business Times
Vietnam launches long-awaited new trading system, moves closer to market upgrade
[HANOI] Vietnam's Ho Chi Minh Stock Exchange (HoSE), on Monday (May 5), officially rolled out the most comprehensive infrastructure overhaul to date. This will serve as a foundational step for it to align with international standards and unlock a potential equity-market upgrade to emerging status this year. The new system, known as KRX, has been under development via a partnership between HoSE and Korea Exchange since 2012. It is expected to address earlier technical challenges, such as order congestion, as well as enable a wide range of advanced features aimed at shortening the settlement cycle and increasing trading capacity, according to an earlier statement from the State Securities Commission. The upgraded platform launched on Monday has enabled new trading practices, including changes in negotiated and odd-lot transactions, order amendment, derivative contract symbols, trading of securities under restriction, foreign room, as well as margin-value control time. However, full functionalities will be activated gradually in phases. Some key features are expected to be introduced next year, including the same-day trading (T+0) and central clearing counterparty (CCP) mechanisms, which are crucial to reduce settlement complexity as well as the time and costs associated with accessing funds and securities. KRX is also designed to facilitate more financial products and instruments in the near future, such as short-selling, algorithmic trading, and options contracts. In addition, it will integrate and develop comprehensive databases encompassing transactions, settlements, ownership, and risk analysis, thus aligning with international standards and enhancing its connectivity with global financial institutions. 'While the system's launch marks a significant step forward, its full operational impact will take time to materialise,' said Tyler Nguyen, chief market strategist at Ho Chi Minh City Securities Corporation (HSC). A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Petri Deryng, portfolio manager at PYN Fund Management, believes that once KRX is fully operational, Vietnam's stock market could see its daily liquidity reach four to five times higher than the current level. The average daily trading value on the HoSE was about US$850 million in 2024, marking a nearly 20 per cent increase compared with that in 2023, with an end-of-year market capitalisation of listed stocks surpassing US$290 billion. This puts HoSE's liquidity on a par with that in Indonesia's and Malaysia's stock exchanges, which are classified as secondary emerging markets by global index provider FTSE. In a note to investors on Mar 24, Deryng stated that FTSE emphasised the importance of getting the new KRX trading system up and running in Vietnam, 'as its features create a path to other changes and are an important factor in the market status assessment'. Potential market upgrade in 2025 The London-headquartered index provider has included Vietnam in its watch list for a possible upgrade to emerging-market status since 2018. However, according to its interim report released on Apr 8, Vietnam fell short of meeting two criteria. The first one was 'Settlement Cycle (delivery versus payment)', which was rated as 'restricted' due to the current practice of a pre-trading check to ensure the availability of funds prior to executing trades. This prevents trade failures artificially, which leads to the unrated criterion of 'Settlement – costs associated with failed trades'. Last November, Vietnam's authorities addressed these impediments by removing the prefunding requirement. This had asked foreign institutional investors to deposit the entire funds before placing 'buy' orders, thus reducing capital efficiency and making the country less attractive compared with other markets. With the new rule in place, securities companies with sufficient capacity can place orders on behalf of these investors before the funds are fully transferred, as long as payment obligations are met by the settlement date. 'Given this development, FTSE Russell continues to monitor the market and seek feedback from market participants on the (non-prefunding) model and the management of failed trades,' the index provider added in the April report. Some brokers are already planning to offer T+0 settlement and a netting mechanism – which consolidates multiple transactions into a single net obligation – to top-tier institutional clients, such as exchange-traded funds (ETFs), which are major investors in the FTSE. According to market watchers, this early adoption could facilitate a smoother transition and accelerate the broader market upgrade. However, the current broker-led model places the credit and settlement risk on the brokers. The CCP, which is slated to be enabled by KRX in the coming year, could mitigate this systemic risk by becoming the legal counterparty to both sides of a trade, guaranteeing settlement even if one party defaults, thereby eliminating the need for prefunding. Foreign capital could play bigger role As technical barriers are lifted, HSC's Nguyen believes that foreign capital, particularly from ETFs tracking indices such as MSCI Emerging Markets or FTSE Emerging Markets, is likely to play a larger role in Vietnam's equity market. 'The anticipated initial inflows of US$3 billion to US$4 billion from a potential FTSE upgrade represent only the beginning; greater allocations are likely to follow as Vietnam further integrates into the global financial system,' he noted. The World Bank forecast that the stock-market upgrade could bring up to US$25 billion in new investments from international investors to Vietnam by 2030. However, short-term and medium-term prospects remain uncertain, especially after US President Donald Trump hit Vietnam with one of Asia's highest reciprocal tariffs of 46 per cent on Apr 2. The benchmark VN Index then showed heightened volatility and dropped a sharp 17 per cent on Apr 9. It was down 6.2 per cent on a monthly basis as at the end of April, bringing the year-to-date performance from a gain of 4 per cent as at the end of March to a loss of 3.2 per cent as at May 2. The VN Index closed at 1,240.05 on May 5, up 1.1 per cent after the official launch of the KRX system, which coincided with the first trading day after a five-day-long holiday. 'In the interim, we expect positive sentiment around the roll-out to benefit brokerage stocks,' Nguyen added. '(However,) trade-war tensions remain a key sentiment driver.'
Business Times
05-05-2025
- Business
- Business Times
Vietnam's main stock exchange launches long-awaited trading system
[HANOI] Vietnam's Ho Chi Minh Stock Exchange officially launched its new trading system on Monday (May 5), as the country pushes to unlock emerging market status and boost foreign investment. The new system, known as KRX from Korea Exchange, is expected to shorten the settlement cycle and increase trading capacity, according to an earlier statement from the State Securities Commission. 'The new system will establish the foundation for a central clearing counterparty system,' said Nguyen The Minh, head of research at Yuanta Securities Vietnam. Both the MSCI and FTSE indices currently classify Vietnam as a frontier market, which prevents many funds, family offices, and others from investing in companies listed there. FTSE will hold its next regular review in September. Vietnam has been on FTSE's watchlist for a possible upgrade since 2018. Vietnam's benchmark stock index rose slightly on Monday morning, reaching 1,232 as at 0243 GMT. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Last November, Vietnam removed a requirement for overseas investors to fully prefund equity trades, one of the longstanding barriers to its potential upgrade. The KRX had faced multiple delays due to regulatory and technical roadblocks. 'KRX can enhance market liquidity and pave the way for the launch of other new financial products including day trading, short-selling and derivatives, which will better benefit investors,' Minh said. According to Minh, the system has been functioning properly so far, but it may take investors some time to get accustomed to it. REUTERS
