Vietnam stock market predicted to maintain high activity after Lunar New Year
The Hanoitimes - The stock market usually goes up in ten sessions after the Lunar New Year holiday with a strong increase in trading volume and value.
Investors are advised to hold and maintain a proportion of stock exposure through the Lunar New Year festival with 80% probability that the market will continue to rally after the festive period, a report from Bao Viet Securities Company (BVSC) said.
According to BVSC's statistics, since 2010, the market has usually rallied in about ten sessions before the Lunar New Year holiday – the market rallied for nine out of ten observed years with an average increase of about 4.57%. However, market liquidity often shows signs of decline during this period.
BVSC said in three out of ten observed years, trading volume increased in ten sessions before the Lunar New Year and only four out of ten observed years, trading value increased. The average decrease of trading volume was 16.43% year-on-year and of trading value was -17.25%.
This was due to the fact that investors restructured loans before and avoided holding loans during the festive holiday. However, according to BVSC statistics, the markets also usually increase in ten sessions after Tet holiday but with a strong increase in trading volume and value. In eight out of ten years under study, the benchmark Vn-Index increased with an average increase of 4.31%. Trading volume increased over eight out of ten years with an average increase in those eight years at 45.03% and trading value increased in nine over ten years with an average increase of 40.31%.
Therefore, investors should take advantage of the market’s prior Lunar New Year sessions to buy, sell and hold stocks, concluded BVSC.
A study from FiinGroup expected liquidity of Vietnam’s stock market to improve in 2020, thanks to the capital inflow from foreign investors and attractive market valuation.
FiinGroup stated the current market valuation is at the same level as when the VN-Index hovered around 700 in mid-2017 before a strong rebound, which is “the most positive factor for the market potential in 2020. However, the key points lie on the quality of corporate’s profit growth in the coming quarters to lure cash flow return.”
- Vietnam gov't greenlights Mobile Money
- Vietnam’s consumer prices declines 0.03% m/m in May
- Vietnam records fiscal deficit of over US$330 million in Jan-May
- Vietnam gov’t waives taxes to boost economic recovery
- Trade war, Covid-19 make Vietnam even more attractive to foreign investors: HSBC
- Vietnam gov't pushes for wider use of cashless payment
- S.Korea Kookmin injects US$100 million in Vietnam branches
- S&P maintains Vietnam’s sovereign rating at BB with stable outlook
- Vietnam needs to get ready for capital flight from China: PM
- Vietnam raises monthly taxable personal income threshold by 22%
In new normalcy, Hanoi seeks to lure more investment
Hanoi seeks permission to use proceeds from SOE sales for urban railway projects
Hanoi donates face masks to New York to support Covid-19 fight
What to do in Hanoi in 24 hours: Nightlife
Predictable legal environment to help Vietnam attract FDI post Covid-19: NTT Data Vietnam CEO
Scorching heat strikes Hanoi with temperature surging to 40 degrees Celsius
Hanoi to build sewage collection system to revive its dying river
More monetary easing measures still to come in Vietnam: Fitch
Iconic lakes in Hanoi