Securities companies say idle money would flow from banks to stocks

The interest rate reductions is really good news for the production sector, the real estate market, and especially the stock market. Securities companies, in their analysis reports, have all predicted a brighter period for the stock market.

FPT Securities Company

The interest rate and CPI reductions have made securities investors sigh with relief. However, the market is witnessing the growing pressure of profit taking, after the VN Index kept rising for the last 11 consecutive trading sessions.

The short-term investors, who have shares in their hands, should keep a close watch over the trading volumes on the market. They should sell shares if seeing the trading sessions where big transactions of 100 million shares are made.

Meanwhile, short-term investors, who are holding cash, should stay outside the market and wait, because it is risky to join the market at this moment. Long term investors still can disburse money for good shares.

Rong Viet Securities Company

The last week’s trading session showed less positive signals, especially with leading shares such as SSI, KLS, VND and PVX. The pressure of selling shares out is growing. If the cash flow is not strong enough, this week is likely to be a week with pessimistic performance in both the index and the liquidity.

The investors, who are holding shares, need to restructure their investment portfolios. The investors who are holding cash need to be patient and stay outside the market, to learn more about the real demand before deciding to join the market.

However, the market is being supported by good information, including the easing inflation rate and the bank loan interest rate reductions. This spells that the cash flow to the stock market would increase. People, who have idle money, would not be satisfied with the low deposit interest rates, and they would make investment in stocks which can bring bigger profit.

HCM City Securities Company

The State Bank of Vietnam has affirmed that commercial banks have begun easing the lending interest rates to 17-19 percent. The banking association has affirmed that banks now do not pay higher than 14 percent per annum to mobilize capital from the public.

Another noteworthy piece of news is that the Electricity of Vietnam has proposed the Ministry of Industry and Trade (MOIT) to allow raising the electricity prices from September. The price increases remain unclear.

The petroleum prices may continue the downward trend, and if the price decreases occur at the time when the electricity prices increase, this may cause the “neutralized effect”. If so, the pressure on the inflation is easing.

The Ministry of Planning and Investment has suggested the IPOs (initial public offering) for Viettel, MobiFone, the two big telcos, and Habeco and Sabeco, the two big brewery producers. In case the government needs financial sources and eases the budget deficit, the sale of stakes at state owned enterprises through IPOs is a good solution.

In the best possible scenario, a telco and a brewery producer, possibly Viettel and Habeco, successfully make IPOs and list their shares on the bourse, this would be considered a big success in the process of state owned enterprise equitization.

The trading sessions with slight corrections, followed by the trading sessions with strong and sharp increases, prove to be the model of the market for this week, when investors keep optimistic about the market. However, the indexes would still meet resistance on their way of going up.

ACB Securities Company

The interest rate reductions would mean the increases in the investments in the stock market, because investors tend to inject money in the sectors which can bring higher profits.

The domestic gold price is higher by 1 million dong per tael than the world’s price. However, with the strict control of the State Bank, the price gap would not cause any pressure on the gold imports and would not cause the dollarization to the national economy.

The VN Index is staying at the resistance threshold of 460 points.

Source: VnExpress

Tags: Vietnam securities companies