At the end of the trading week from February 26 to March 1, VN-Index closed at 1,258.28 points, up 46.28 points compared to the previous week, marking 4 months of continuous increase. The market surpassed the highest level of 2023 and the trading sessions with billion-dollar liquidity are opportunities for stocks in the securities sector to break out.
The highlight of the past week was the positive information from the Conference on the implementation of the 2024 securities market development tasks chaired by the Prime Minister, with the goal of ranking up the Vietnamese securities market by 2025. The latest information from securities companies shows that the Ho Chi Minh City Stock Exchange (HoSE) has just announced the simulation of switching to the KRX information technology system. It is expected that from the beginning of March 2024, HoSE will switch the system, securities companies are preparing systems to switch according to the schedule, testing the trading order entry system and ensuring the operation of stock trading as a normal trading day.
Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Do Bao Ngoc, Deputy General Director of Kiến Thiết Vietnam Securities Company (CSI), analyzed the securities stock group that started its upward trend since last year when the interest rate trend started to decrease. The lower the interest rate, the stock market will benefit from the inflow of money, increased market liquidity, and more efficient self-trading of securities companies.
The stock market has performed positively in recent times, with VN-Index surpassing 1,250 points. Photo: Hoang Trieu
This trend has been positive since Q4/2023 and more pronounced in the first months of 2024. The average transaction value in the first 2 months of 2024 maintained a high level, better than the average of the whole year 2023. Prospects in the near future are that the deposit interest rate will remain low, lending interest rates may decrease further; The US Federal Reserve (FED) will implement a roadmap to reduce interest rates to help reduce pressure on the exchange rate, and the State Bank has room for monetary policy; promote the disbursement of investment capital… These factors will have a positive impact on the market, including the securities stock group.
“The upward trend of securities stocks has partly reflected in the market recently, many stocks have increased significantly and there is differentiation. The upcoming trend, VN-Index may have fluctuations, adjustments but it will be adjustments to continue increasing, creating opportunities for new investors to participate in the market” – Mr. Do Bao Ngoc said.
Many economists believe that the new KRX trading system is about to be put into operation and the target of striving to rank up the Vietnamese securities market from the frontier market to the newly emerging market… will attract domestic and foreign capital flows to participate, contributing foster market growth.
Although foreign investors had a net withdrawal in 2023, SSI’s expert believes this trend will reverse in the coming year, after the gradual reduction of the FED’s interest rates and the opportunity for Vietnam’s stock market to be upgraded by FTSE Russell in 2024 – 2025.
Mr. Nguyen Thanh Lam, Director of Research and Analysis of Retail Clients at Maybank Securities Company, said that upgrading to the emerging market will be a motivation to attract foreign capital inflows in the period of 2024 – 2025. Because stock markets often perform positively before being upgraded. Currently, Vietnam is on the FTSE Russell watchlist for upgrading to the second-tier emerging market.
“Performing pre-funding checks is the only obstacle to upgrading. According to the progress of the solutions being implemented by the management agencies, it is predicted that the potential upgrading by FTSE Russell could take place in March 2025, compared to the deadline of September 2025 set by the Government for the securities market management agency” – Mr. Lam said.
