Stock market positively responds to interest rate cuts
The VN-Index has jumped 105 points in total, or over 10%, for the last nearly four months - Illustrative photo: congthuong.vn |
Last week, the benchmark VN-Index rose 2.1%, equivalent to 24 points to 1,129.38 points. The money flows tended to be channeled into bank stocks while some steel and chemical ones also went up thanks to high hopes for the pressure from lending interest rates to be eased, the Lao dong (Labour) daily reported.
Since the beginning of 2023, the SBV has slashed the key interest rates for four times, by 0.5 - 2% per year in total.
The downward trend of the interest rates is expected to continue encouraging the money flows to be shifted from bank deposits to other investment channels with higher profitability like securities.
Illustrative image - Photo: baodautu.vn |
As a result, the VN-Index has jumped 105 points in total, or over 10%, for the last nearly four months since the first regulatory interest rate cut in mid-March.
According to VietinBank Securities, the reduction of the regulatory interest rates should be maintained for a long time with stronger cuts so that it can have observable effects on the stock market, especially when many factors other than the monetary policy are negatively affecting the market.
The company predicted the stock market will become more positive in the latter half of 2023.
Meanwhile, experts held that there remains room for further cuts.
Standard Chartered forecast the SBV will lower the refunding interest rate by 50 basis points in the third quarter to equal the rate during the pandemic-hit years, and maintain the level until the end of 2025.
Likewise, HSBC experts also projected another interest cut, by 50 basis points, for Q3 which will decrease the regulatory interest rates to 4% and reverse tightening efforts in 2022. The move will also be equivalent to the reduction during the COVID-19 pandemic.
Analysts from the Maybank Investment Bank also said Vietnam still has room to lower the rates between now and the year’s end.
See also
Việt Nam's stock market moves closer to emerging market status amid key policy changes
18:05 | 06/11/2024 Stock Market
Asian shares are at their lowest in three weeks
16:18 | 19/10/2024 Stock Market
Stock market sees notable recovery amid ongoing uncertainties
09:11 | 15/10/2024 Stock Market
SSI: Masan to benefit from Vietnamese stock market upgrade
17:11 | 02/10/2024 Stock Market
Japan helps Vietnam improve stock market’s transparency
15:40 | 23/09/2024 Stock Market
Market expected to pass psychological 1,300 mark
15:10 | 26/08/2024 Stock Market
See more news
Market soars above 1,260 points
10:43 | 20/08/2024 Stock Market
Stock market expected to continue recovery in the remainder of the year
17:56 | 18/08/2024 Stock Market
Surge in new individual securities accounts in July
08:21 | 10/08/2024 Stock Market
The market requires a prolonged period to reach stability
14:55 | 05/08/2024 Stock Market
Vietnamese stock market sees remarkable 24-year transformation
09:30 | 31/07/2024 Stock Market
Bank stocks surge on dividend payouts and profit growth
07:00 | 29/05/2024 Stock Market
Stock market upgrade to help Vietnam lure another 10 bln USD in investment
09:23 | 03/05/2024 Stock Market
Over 163,000 new stock trader accounts created during March
08:48 | 09/04/2024 Stock Market
PM urges efforts to upgrade stock market to emerging status
08:50 | 29/02/2024 Stock Market
Vietnamese stock market continues strong upward trend
09:02 | 24/02/2024 Stock Market
VAT tax reduction should continue until mid-2025: Ministry
17:15 | 21/11/2024 Policy
Top legislator starts official visit to Cambodia
17:09 | 21/11/2024 News and Events
Việt Nam and Malaysia upgrade relationship to Comprehensive Strategic Partnership level
17:01 | 21/11/2024 Cooperation
Hà Nội prepares for temperature drop as cold front approaches
16:56 | 21/11/2024 Environment
First Vietnam Dialogue opens new avenues for Vietnam-Germany financial cooperation
16:18 | 21/11/2024 Cooperation
Multimedia
Vietnam - Malaysia Strategic Partnership
10:54 | 21/11/2024 Infographic
Vietnam, Dominican Republic strengthening cooperation
08:45 | 20/11/2024 Infographic
Vietnam - Brazil strategic partnership
10:26 | 19/11/2024 Infographic
Nhon - Hanoi Station elevated urban railway comes into operation
09:04 | 18/11/2024 Infographic
Key facts on G20 and Vietnam's participation
09:42 | 17/11/2024 Infographic
VAT tax reduction should continue until mid-2025: Ministry
17:15 | 21/11/2024 Policy
NA deputies scrutinise investment policy for North-South high-speed railway project
08:54 | 21/11/2024 Policy
Developing relations with China is Vietnam’s top priority: Deputy PM
08:40 | 20/11/2024 Policy
Vietnam pledges to make more contributions to APEC cooperation
09:46 | 17/11/2024 Policy
Tra fish sector aiming for production, processing greening for sustainable development
15:38 | 20/11/2024 Industry
Solutions discussed to ensure coal supply for electricity generation in 2025
16:24 | 19/11/2024 Energy
Garment industry targets 47-48 billion USD in export turnover next year
16:16 | 19/11/2024 Industry
Residents support restarting Ninh Thuận Nuclear Project, call for clear roadmap
14:46 | 18/11/2024 Energy
Workshop seeks ways to attract Japan’s green investment to Vietnam
09:43 | 20/11/2024 Investment
Government approves investment policy to build Cam Lien Industrial Park in Quang Binh
16:57 | 18/11/2024 Investment
Disbursement of public investment must be accelerated: Deputy PM
12:17 | 17/11/2024 Investment
LG plans to pour further US$1 billion investment into Vietnam
10:42 | 16/11/2024 Investment
HDBank wins three awards at Vietnam Listed Company Awards 2024
10:53 | 21/11/2024 Finance-Banking
VIB, Flywire partner to streamline cross-border payments for students from Vietnam
16:46 | 18/11/2024 Finance-Banking
Vietcombank issues 2 trillion VND worth of green bonds for first time
18:55 | 16/11/2024 Finance-Banking
UK stands ready to help Vietnam build international financial hub
17:13 | 13/11/2024 Finance-Banking
Hà Nội prepares for temperature drop as cold front approaches
16:56 | 21/11/2024 Environment
Hundreds of damaged irrigation reservoirs need repairing
09:02 | 20/11/2024 Environment
Greening e-commerce crucial for sustainable development
10:47 | 18/11/2024 Environment
National Environmental Protection Plan ensures high quality living environment
08:59 | 18/11/2024 Environment
People, community at heart of digital transformation: Deputy PM
09:26 | 21/11/2024 Science - Technology
AI is core technology of 4th Industrial Revolution: Minister
11:19 | 20/11/2024 Science - Technology
Global scientific luminaries to gather at VinFuture sci-tech week
11:08 | 19/11/2024 Science - Technology
Hà Nội to host 2024 e-commerce and digital economy forum on November 21
17:23 | 17/11/2024 Science - Technology
Việt Nam-UK Institute plans for an international university
09:14 | 21/11/2024 Society
Hanoi aims to become a smart city by 2030
09:13 | 21/11/2024 Metropolis
Huế Central Hospital boosts international cooperation to become global health hub
16:30 | 20/11/2024 Society
Hà Nội hospital partners with UK charity to provide surgeries for children with facial deformities
16:03 | 20/11/2024 Society
VN takes part in food and beverage fair in Chicago
09:45 | 20/11/2024 Vietnamese Brands
Hòa Bình honey awaits reactions from UK
10:41 | 19/11/2024 Vietnamese Brands
Post-Typhoon Yagi trade networking event starts in Hải Dương
10:04 | 19/11/2024 Vietnamese Brands
Hòa Bình exports honey and pearl onions to UK
10:17 | 16/11/2024 Vietnamese Brands
Bac Ninh Province: Dong Ho folk painting needs urgent safeguarding
15:04 | 20/11/2024 Culture
Vietnamese designers tell stories of culture at Fashion Week
10:14 | 20/11/2024 Culture
Creative City promotes socio-economic development, says expert
09:59 | 20/11/2024 Lifestyle
Five Vietnamese creations listed among the world’s 100 best-rated dishes with coconut
10:54 | 19/11/2024 Culture
Blooming buckwheat flowers on Ha Giang roads
14:54 | 21/11/2024 Tourism
Folk cultural festival on Côn Đảo Island attracts tourists
10:07 | 20/11/2024 Tourism
Tra Que named among world’s best tourism villages in 2024
11:20 | 18/11/2024 Tourism
Quảng Ninh to attract more foreign tourists by year-end
16:52 | 14/11/2024 Tourism