Latest news with #VN-Index
The Star
4 days ago
- Business
- The Star
Vietnam stock market starts June with modest gain
The VN-Index recovered the 1,335-point mark despite early pressure from large-cap declines. — VNA/VNS HANOI: Vietnam's stock market started June on a positive note, with a modest gain on Monday, primarily driven by small and mid-cap stocks. The VN-Index recovered the 1,335-point mark despite early pressure from large-cap declines, while liquidity eased slightly and foreign investors continued to sell, albeit at a reduced pace. Early on, the market experienced downward pressure from a number of large-cap stocks, briefly pulling the VN-Index below 1,325 points. However, continued cash inflows into small and mid-cap shares helped the rebound to end higher. By the close of trading, the VN-Index rose 3.7 points, or 0.28%, to 1,336.3 points on the Ho Chi Minh Stock Exchange. Market breadth leaned towards the gainers, with 201 stocks advancing and 125 declining. Liquidity fell by 6.7% from the previous session to 0.8 trillion dong. The VN30-Index, which tracks the 30 largest listed companies by market capitalisation, edged down 0.64 points, or 0.04%, to 1,423.04. Within the basket, 16 stocks gained, 13 declined and one remained unchanged. Leading the market's upward momentum was Vietnam Rubber Group – Joint Stock Co, which climbed 2.09% and contributed over 0.6 points to the VN-Index. It was followed by gains in two banking stocks: Techcombank, up 1.31%, and Sacombank, which rose 2.7%. On the other hand, several major stocks posted losses and that weighed on the index. The Vingroup cluster led the decliners, collectively dragging the VN-Index down by nearly five points, with VIC being the most notable, slipping 0.41%. Analysts from Viet Dragon Securities said: 'The market continued to face resistance at the 1,345-point level and retreated. 'Liquidity declined slightly compared to the previous session, suggesting reduced profit-taking activity and easing selling pressure, particularly as foreign outflows moderated. — Viet Nam News/ANN
The Star
22-05-2025
- Business
- The Star
Tariffs remain a key factor swaying markets
New order: Motorcyclists pass the Hanoi Stock Exchange. Vietnam's proactive negotiation stance with Washington positions it favourably in the evolving trade landscape. — AFP HANOI: As global trade tensions subside, stock markets, including Vietnam's, are seeing a positive response. Recent developments in tariff negotiations, especially between the United States and major trading partners, are playing a crucial role in shaping market dynamics. Ongoing trade discussions have shown encouraging progress, highlighted by a significant agreement between the United States and the United Kingdom, the first since the US administration implemented reciprocal tariffs earlier this year. These negotiations have alleviated trade tensions and sparked a notable increase in foreign investment. Data from Bloomberg showed that global funds have purchased a net US$9.64bil in stocks across emerging Asian markets, excluding China, over the past three weeks, marking the longest streak of inflows since March 2024. In Vietnam, the stock market reflects this renewed optimism. The Ho Chí Minh City Stock Exchange reported trading liquidity exceeding US$1bil on May 14, with the VN-Index surpassing the 1,300-point threshold. Tyler Nguyen Manh Dung, chief market strategist at Ho Chí Minh City Securities Corp, identified three critical factors driving this recovery: valuation adjustments, easing tariff fears and stability in key export sectors. Following a period of sell-offs, stock valuations have become increasingly attractive, with price per earning ratios now below the five-year average, prompting investors to reconsider market entry. Meanwhile, as concerns over tariffs diminish, investor anxiety regarding potential price hikes on Vietnamese exports has lessened. Vietnam's proactive negotiation stance with the United States positions it favourably in the evolving trade landscape. He added that industries such as seafood, textiles and timber, vital to Vietnam's export economy, are expected to remain largely unaffected by US tariffs, bolstering investor confidence in related equities. After a period of panic selling, foreign investors have returned to net buying, driven by the rising prices of major stock groups such as banks. In the first half of May, the net buying value by foreign investors exceeded 4.2 trillion dong. Despite the positive market trends, tariffs continue to be a significant concern. Bui Nguyen Khoa, deputy director of the BIDV Securities Analysis Centre, noted that while the risk of a US economic downturn appears to have diminished, upcoming negotiations will present challenges. The US government maintains a firm stance on certain sectors, particularly pharmaceuticals and semiconductors, suggesting that tariffs will remain a strategic tool for domestic manufacturing incentives. Nguyen Thi My Lien, chief analyst at Phu Hung Securities, emphasised that the baseline tariff of 10% imposed by the United States is likely to persist, creating ongoing pressure on global economic growth. In light of these evolving conditions, investors are urged to reassess their portfolios. Khoa recommends increasing exposure to sectors less impacted by tariff policies, such as banking and infrastructure, while also considering cash positions as the VN-Index approaches short-term resistance levels between 1,320 and 1,340 points. Lien anticipates that the market will shift toward a phase of informed assessment rather than fear, highlighting opportunities in domestically focused sectors that are less reliant on international trade. — Viet Nam News/ANN
Al Jazeera
03-04-2025
- Business
- Al Jazeera
‘Worse than worst-case scenario': Trump's tariffs send markets reeling
After weeks of anticipation, global investors finally have sight of United States President Donald Trump's 'reciprocal' tariffs. If the reaction of the stock market is any guide, the 'liberation day' tariffs unveiled on Wednesday exceeded their worst fears. From the US to Asia to Europe, markets tumbled as investors absorbed the implications of the sharpest turn towards protectionism by the world's largest economy since the 1930s. Futures tied to the US's benchmark S&P 500 and tech-heavy Nasdaq-100 – which can be traded outside usual market hours – dropped more than 3 percent and 3.5 percent respectively, setting the stage for heavy losses when Wall Street reopens on Thursday. Japan's benchmark Nikkei 225 dropped as much as 4.5 percent, while South Korea's KOSPI and Hong Kong's Hang Seng each fell more than 2 percent. In Vietnam, the benchmark VN-Index suffered one of the worst days in its history, plunging more than 6 percent. 'The hike in tariffs was more aggressive than expected,' Lynn Song, chief economist for greater China at Dutch bank ING, told Al Jazeera. 'Many were expecting a range of 10-20 percent tariffs. This sort of aggressive move will probably risk some retaliation from the bigger players, though smaller countries could choose to try and negotiate for a lower rate.' Daniel Ives, an analyst with Los Angeles-based wealth management firm Wedbush Securities, went as far as to describe Trump's plans as 'worse than the worst-case scenario'. While Trump announced a baseline 10 percent tariff for all imports to the US, he confirmed that much higher duties would be imposed on dozens of other countries. The steeper rates apply to both major US trading partners and smaller economies – and allies and rivals – alike. China, the US's third-largest trading partner accounting for more than $430bn worth of US imports annually, is facing a 34 percent tariff. When added to Trump's previous tariffs on Chinese goods, the latest tariff lifts the overall rate to 54 percent. 'In our view, the scale and speed of the new Trump administration's additional tariffs and other measures against China are much worse than markets had expected, though these events unfolding are consistent with our more cautious views,' Ting Lu, chief China economist at Nomura, said in a note. The European Union is set to be hit with a 20 percent tariff, while Japan and South Korea are facing duties of 24 percent and 26 percent, respectively. Some of the steepest rates have been applied to developing economies that potentially have the most to lose from serious disruptions to trade, including Cambodia, Vietnam, Laos, Myanmar, Sri Lanka and Laos, which are facing tariffs of 44-49 percent. Trump's list included exemptions for a limited number of goods, including semiconductors, oil and pharmaceutical products. 'These tariff figures are worse than expected – certainly viewed from Asia, where everyone got hit. An export-dependent region is going to really struggle with sudden, huge price increases,' Deborah Elms, the head of trade policy at the Hinrich Foundation in Singapore, told Al Jazeera. 'This will result in a loss of jobs in markets that are already poor and often fragile.' China and the EU, the world's two largest economies, have already promised to retaliate with their own trade measures, though many smaller trade-reliant economies are seen as hesitant to respond in any way that might exacerbate trade tensions further. After weeks of market volatility due to uncertainty over Trump's plans, a key question is whether the tariffs could be eased in negotiations between Washington and its trade partners. 'The tariff announcement doesn't eliminate uncertainty, but it hopefully puts a boundary around how bad the economic consequences will be,' Brian Jacobsen, chief economist at Annex Wealth Management, told Al Jazeera. 'Including non-tariff barriers in the calculation has pushed the tariff higher than it otherwise would be. That's also the part that is hardest to quantify, so perhaps it leaves a large door open to negotiations. Framing these tariffs as reciprocal will hopefully reduce the likelihood of retaliation.' Gary Ng, a senior economist with the investment bank Natixis in Hong Kong, said that while he expects US trade partners to work towards a compromise, it is likely that at least some of the measures will become permanent. 'Regardless of what the deal is, it is highly likely that the US will keep part of the tariffs for everyone,' Ng told Al Jazeera. While the severity of Trump's tariffs seemed to take many investors by surprise, there is room for stocks to fall much further still – depending on the administration's next moves. JPMorgan and Goldman Sachs have put the likelihood of Trump's protectionist policies tipping the US economy into a recession this year at 40 percent and 35 percent, respectively. Veljko Fotak, an associate professor of finance at the University at Buffalo, said the market does not see Trump's latest announcement as the final word on tariffs. 'If that were the case, markets would be falling a lot more dramatically, as this kind of tariff regime would effectively guarantee a recession. The long-run tariff policy remains uncertain – how will other countries react? Will the US escalate? Will it pull back?' Fotak told Al Jazeera. 'Markets did react forcefully, but we will see further downward corrections if these tariffs persist – and more dramatic movements if the trade war escalates.'
