Vietnamese stock market still attractive to investors: report | Company

Illustrative image (Photo: VNA)

Hanoi (VNA) – The relatively low devaluation of the VND against the USD compared to that of other currencies in the region shows that the Vietnamese stock market remains one attractive destination for
investment flowsas uncertainties persist across most of the global financial market, according to a weekly investment strategy report from Vietcombank Securities Co., Ltd (VCBS).

That the US Dollar Index continues to fall slightly and the successful increase in foreign exchange reserves by the State Bank of Vietnam over the past week is considered a positive signal for the domestic market, it said.

In the short term, the liquidity of the VND will continue to improve significantly, resulting in a possible interest rate cut in the interbank market.

At least 12 commercial banks, most notably the Vietcombank and the Agribank, have announced they will cut lending rates to support businesses following a central bank directive.

After a slight rise in the benchmark index and continued low liquidity levels in recent weeks, the VCBS believes the market will continue to struggle and fluctuate in a narrow holiday range.

Experts at the firm recommend that short-term investors take advantage of the uptrend to take profits on short-term speculative stocks while limiting new trade openings until the Lunar New Year.

MB Securities (MBS) said that while the UN Index rose for two consecutive weeks, the upper limit of 1,064 points is still strong resistance when there is no liquidity support.

The market is expected to break out of the accumulation zone or remain sideways after the Lunar New Year, but investors will have opportunities with individual stocks./.