link tải app 188bet开户July to be a hard month for Vietnamese shares

July to be a hard month for Vietnamese shares

HÀ NỘI — July looks set to be a hard month for investors as market turbulence continues due to the unpredictability of global stocks and with attention on second-quarter earnings expectations.

The local market has stalled in the last two weeks after the benchmark VN-Index on the Ho Chi Minh Stock Exchange climbed to a four-month high of  九00 points on June  一0.

The benchmark index had gained  三 六. 三 六 per cent from the three-year low of  六 六0 points in late March. But from the four-month peak, the index has lost  五. 三 三 per cent in two weeks.

In comparison, US stock indices S P  五00 and Dow Jones declined by  六. 九 一 per cent and  九. 二 七 per cent, respectively, from their four-month highs in the same period.

On both markets, individual investors have played the key role driving stock indices up as global stocks hit rock bottom in late March on worries about the recession caused by the COVID- 一 九 pandemic.

The pattern of the VN-Index is quite similar to that of the US stock indices in the last two weeks, which indicates the US market is taking a toll on the Vietnamese market.

Last week, the VN-Index fell  一. 九 一 per cent to finish at  八 五 一. 九 八 points.

The Vietnamese stock market was affected by US stocks as investors worried about the second wave of coronavirus given the easing of travel restrictions and re-opening of some states, according to Sài Gòn-Hà Nội Securities Co (SHS).

The total number of coronavirus cases in the world exceeded  一0 million as of  三am on Sunday and the death toll was nearly  五00,000, according to Worldometer. The US-led the board in both total cases (more than  二. 五 八 million) and total deaths (nearly  一 二 八,000).

Aside from the worldwide spread of the coronavirus, investors are also worried about another stage of the trade war as the economic relationship between the US and China has deteriorated in recent weeks.

Such concerns have made international economic and financial institutions such as the International Monetary Fund (IMF) and Federal Reserve deliver bad forecasts for global economic growth this year.

Besides the impact of US stocks, investors in Việt Nam are entering the time in which corporate information is limited. As most listed firms have organised their annual shareholders’ meetings, attention now will turn to second-quarter earnings reports.

Some large-cap companies such as dairy producer Vinamilk, steel producer Hòa Phát, Vietcombank, HDBank, retailer Mobile World Investment, petrol firm Petrolimex, Techcombank and VPBank have already released their earnings for the second quarter.

There are some positive signals in those firms’ second-quarter earnings reports but they generally are not too optimistic about this year’s performance.

“Second-quarter earnings season will start in July, so investors will be divided on companies’ reports,” Sacombank Securities Co. market analysis director Dương Hoàng Linh said.

“Investors will no longer win easily. They will become more cautious and individual purchasing power will weaken,” he said.

The VN-Index will move sideways in July and it will not be easy for the benchmark to beat  九00-point level this month, according to Phan Dũng Khánh, director of the investment consultancy at Maybank Kim Eng Securities Co.

In the coming week, the VN-Index may struggle and move between  八 四0 points and  八 七0 points, SHS forecast.

Bảo Việt Securities Co (BVSC) warned the pressure on the market still persists and the VN-Index may go down to  七 八0- 八 二0 zone if the short-term bottom line of  八 四0 points is broken in the coming days. — VNS