Stock market: Stable macro balance, sustainable growth

Stock market keep increasing

The stock market today (April 27) continued to have an impressive recovery session in the afternoon. Thus, VN-Index went upstream more than 30 points from the lowest point of the day.

Ending the 2nd consecutive recovery session, this index increased 12.43 points to 1,353.77 points. Green color spreads in almost all industry groups, from real estate, banking, construction and materials, or goods and services. The group share Large-cap VN30 also recorded the dominant gainers. Meanwhile, the selling liquidity was relatively low, showing that the investment sentiment of the market has gradually stabilized.

The stock market had an impressive recovery session. Illustration.

Developing a safe, transparent, efficient and sustainable capital market

After the Publications 304 and 311 were issued consecutively at the beginning of this April, regarding the rectification and stabilization of the stock market and corporate bond market, most recently Prime Minister Pham Minh Chinh has Conference on developing safe, transparent, efficient and sustainable capital markets. In the past telegrams and conferences, the messages and views of the Government and the Prime Minister on capital market development were directed throughout and consistently.

In particular, emphasizing the encouragement and creating all favorable conditions for organizations and individuals to participate in the market, operating in a righteous, healthy, efficient manner, and strictly complying with the law. Firmly handle individuals and organizations that intentionally violate regulations, group interests, and illegally take advantage of profits in order to protect the interests of investors and genuine businesses, and respect and strictly comply with the law. Take all necessary measures to stabilize and develop the market to ensure openness, transparency and sustainable development.

The Prime Minister also requested ministries, branches and functional agencies to promptly take measures to stabilize the market; request issuers to proactively disclose information in accordance with regulations; strengthen the provision of accurate and orthodox information; strictly handle acts of violating the law, spreading false information causing insecurity and safety of the market.

Prime Minister Pham Minh Chinh said: “The Ministry of Public Security and the Government Inspectorate coordinated with relevant ministries and branches to detect and strictly handle violations of the bond, securities and currency markets, with a high determination to make the market healthy. the market, protect the legitimate rights and interests of investors, especially investors effectively. It must be fair here, but if it is to be fair, it must be dealt with strictly. Two sides of the problem, let alone not criminalize civil and economic relations, but do not deal with violations. offense is not allowed”.

Promoting the stock market to develop sustainably

The strong messages from the recent conference on April 22 had a strong spillover effect, stabilizing market sentiment, and were well received and appreciated by investors, businesses, and experts.

Mr. Can Van Luc – Member of the National Financial and Monetary Policy Advisory Council said: “The conference is very important, very necessary and at the right time. Don’t let worms ruin the soup. Not because of a few cases. jobs cause disturbance to the market. On the contrary, eliminate the worm that upsets that soup to make the market healthier, to ensure fairness.”

“It sends a very consistent and strong message about the professional and methodical development of capital markets. Many businesses and business associations have expressed their belief that Vietnam will adhere to the world’s high standards and hope that Vietnam will adhere to the high standards of the world. We will create an important resource for economic development in the coming time,” said Mr. Dau Anh Tuan – Head of Legal Department, VCCI.

The Government and ministries committed to continue stabilizing the stock market for the safe and transparent development. Illustration.

With clear and consistent messages from the Government, representatives of relevant ministries and sectors committed to actively participating in the market to stabilize the market for a safe and transparent development. efficient and sustainable.

“The Ministry of Public Security has been directing the Public Security of units and localities to focus on reviewing, detecting, and affirming that all social media accounts, all acts of unverifiable reporting on cyberspace are illegal. is being reviewed by the police force,” said Major General To An Xo – Chief of Office, Ministry of Public Security.

The inspection and supervision of market activities is also a task regularly performed by the Ministry of Finance and the State Securities Commission, in order to promptly detect violations and unusual transactions. Thereby, creating transparency, in order to protect the legitimate interests of all market participants.

Mr. Tran Xuan Ha – Deputy Minister of Finance said: “The fact that a worm is a worm is a grain of grit in the stock market. If we have discovered it, we must handle it to ensure transparency in the market. The government will coordinate with authorities to create conditions for businesses that have made such mistakes to take remedial measures in accordance with the law and ensure the main interests of investors.

“The inspection and supervision work on the stock market is a regular and continuous work. Building the stock market on the basis of publicity and transparency, only transparency can attract participating capital and investors. only feel secure to participate in the market,” said Mr. Pham Hong Son – Vice Chairman of the State Securities Commission.

The Ministry of Finance will also study and recommend to the Government to submit to the National Assembly for an overall review of legal regulations, amendments to the Law on Securities and the Law on Enterprises. At the same time, actively coordinate with relevant ministries and sectors for the market to develop sustainably in the long term.

Stable macro balance, sustainable growth

Sustainable development is also exactly what investors can expect in a medium and long-term capital mobilization channel like the stock market because after all, in the long-term, all macroeconomic The size and profit prospects of domestic enterprises are still on the way of recovery and sustainable growth.

Vietnam’s GDP in the first quarter was estimated to increase by 5.03% over the same period, higher than the growth rate of 4.72% in the same period last year and 3.66% in the previous year, showing a clear recovery momentum of the economy. .

Since the beginning of this year, the average trading value of a session on the stock market has reached 30,845 billion VND/session, up 15.9% compared to last year. Thus, in terms of transaction size, we have now surpassed Singapore and ranked 2nd in ASEAN, just behind Thailand.

The number of new accounts opened in the first quarter alone reached 676,616 accounts, equivalent to half of all new accounts opened last year.

Foreign investors have a positive view of Vietnam’s market prospects

Based on the above stable growth macro numbers, foreign investors continue to have a positive view of Vietnam’s market prospects. The most obvious proof is the net buying of foreign investors in recent sessions, when the general market dropped quite deeply. In just the past 8 sessions, foreign investors have net bought more than 3,800 billion dong.

The amount of money in net buying in April alone has reached 190 million USD. The interest of foreign investors from the US, Europe and Asia to Vietnam’s stock market skyrocketed, especially during the period of market correction.

“The positive point of this adjustment is the return of foreign investors. In just the past week, the net buying volume of foreign investors has reached more than 100 million USD. Many investors contacted us. to us, they are interested in quality stocks that have been sold off recently despite good fundamentals.Most foreign investors think that VN-Index is at an attractive level and the correction is near. This is a very good opportunity to increase the proportion of investment in Vietnam,” said Mr. Chao Jen Kai – Chairman of the Board of Directors of Yuanta Securities Vietnam.

Mr. Gabriel Lim – Regional Head of Government and Partnerships, APAC and Japan, Acronis Company said: “As investors from Singapore, we very much welcome the latest moves of the Vietnamese Government to improve the health of our country. This is a very positive signal and strengthens our decision to invest in Vietnam.”

Dragon Capital VFM – a company that is managing nearly 7 billion USD in assets in Vietnam market, said that since reopening, this fund has received more than 1 billion USD in net investment and is expected to continue. continue to increase.

“The Government’s determination to sanction wrongful business owners has greatly increased the confidence of the international community. This is a necessary action to make the Vietnamese market transparent, which is the basis for MSCI evaluates and upgrades Vietnam’s market. I must say that in the long term, these are very positive actions”, said Mr. Tsuyoshi Imai – General Director of Japan Securities Company.

In particular, the Prime Minister’s message about his determination to upgrade Vietnam’s stock market from a frontier market to an emerging market is expected to create a big boost for the market. According to investors, if the upgrade is successful, it will lead to a boom in transactions as well as huge capital mobilization for the Vietnamese stock market.

As the message of Prime Minister Pham Minh Chinh has given, “what is good is nurtured, what is bad is cured”, the stock market, too, needs regular medical examination and screening measures. , thereby offering the main remedies that are strong measures to eliminate manipulation, purifying poor-quality goods, and businesses lacking transparency.

The past mistakes are only a minority, but in the long term, corrections are necessary. Thereby, continue to encourage good business organizations and individuals to participate in the market. Only then can a stock market in particular, and the capital market in general, develop in a safe, healthy and sustainable manner, protect investors’ interests, and create confidence for domestic and foreign investors. .

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