Stock market see upswing in H2, bolstered by lower interest rates
VNDirect expects the Vietnamese economy to recover in the second half of 2023 with a growth forecast for the second half of this year of 7.1%, thereby raising GDP growth for the whole year of 2023 up to 5.5%.
Analysts on the trading floor of VNDirect Securities Co - Photo courtesy of VNDirect |
Regarding interest rates, deposit and lending rates will maintain a downward trend in the second half of the year. The average deposit interest rate of 12 months will decrease to 6.0-6.5% per year by the end of 2023. Lending interest rates may decrease significantly in the second half of 2023 due to the capital cost of commercial banks decreasing, thanks to the State Bank cutting the operating interest rate in the first half of 2023.
However, VNDirect noted that the USD/VND exchange rate will fluctuate more strongly in the second half of 2023 as the US Fed's operating interest rate remains at its high until the end of 2023 or longer to curb inflation. However, the exchange rate is expected to fluctuate no more than /-2.0% compared to the beginning of this year.
Solutions from both monetary and fiscal policies will put Vietnam’s economy back on track and start a new growth cycle, VNDirect said.
Regarding the stock market, the analysis team said that the cash flow into the market started to recover, showing that investors' confidence in the market is gradually improving. “Therefore, VNDirect believes that this is the right time for investors to return to the market and build investment portfolios and anticipate a new growth cycle.”
“We think the VN-Index could reach 1,300 points in the second half of 2023, corresponding to a P/E in 2023 of 13.3 times", said VNDirect.
KB Securities Vietnam (KBSV) forecasts that deposit interest rates at banks will continue to decline from now until the end of this year, with the 12-month average deposit interest rate of commercial banks at around 6.7%, down 1.3 percentage points compared to the beginning of the year. Lending interest rates will also decrease compared to the beginning of 2023 by 1 to 1.3 percentage points.
One of the biggest risks that Vietnam’s stock market will continue to face in the second half of the year is that interest rates in the US remain high, increasing the risk of a recession there.
Accordingly, KBSV forecasts that the economy of Vietnam as well as the stock market will be negatively affected by the decline in investment inflows, weak exports and poor business results of listed companies.
KBSV forecasts that by the end of 2023, the VN-Index will reach 1,240 points. The company reduced the average profit growth forecast of companies listed on the Ho Chi Minh Stock Exchange from 5% to 0.5%.
"The domestic macro context will only really improve from the fourth quarter, while the second and third quarters will continue to face potential risks,” it said.
KBSV increased its forecast for the VN-Index's reasonable P/E range from 14.3 times to 15.5 times.
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