Vn index

Shares close higher on bargain-purchases

September 28, 2023 by bizhub.vn Leave a Comment

Customers make transaction at an office of SSI Securities Inc (SSI). SSI soared 6.9 per cent yesterday. — Photo SSI

The stock market finished higher Wednesday, boosted by bargain-hunting force after a two-day correction.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed the trading day at 1,153.85 points, an increase of 1.4 per cent.

The index had lost a total of 4.6 per cent in the last two sessions.

The market’s breadth returned to positive territory with more stocks recovering. Specifically, 308 ticker symbols on HoSE added points, while 191 dropped lower.

Trading value on the southern bourse reached VNĐ18.2 trillion (US$746.6 million), equal to a trading volume of nearly 860.4 million shares.

The index’s reversal was mainly driven by gains in some large-cap stocks as recent sharp falls stimulated some investors to increase stock proportions in their portfolios.

The VN30-Index, which tracks the 30 biggest stocks on HoSE also rose higher, up 1.32 per cent, to 1,168.60 points.

In the VN30 basket, 27 stocks advanced, two stocks declined and one ended flat.

Statistics from a finance website vietstock.vn showed that SSI Securities Inc (SSI) recorded the best performance yesterday and led the bullish trend. The company’s shares soared 6.9 per cent.

Other pillar stocks supporting the uptrend were FPT Corporation (FPT), PetroVietnam Gas JSC (GAS), Hòa Phát Group (HPG), and Vietnam Rubber Group (GVR).

Becamex (BCM) of the realty industry and Mobile World Investment Corporation (MWG) of the retail sector also saw big increases, lifting the sentiment.

Banking stocks performed positively and bolstered the increase of the market with gainers including Military Bank (MBB), Techcombank (TCB), VietinBank (CTG), Việt Nam International Commercial JS Bank (VIB), Saigon-Hanoi Commercial JS Bank (SHB), Tiên Phong Bank (TPB) and Vietcombank (VCB).

“Despite support, the market’s recovery is still modest. The supportive cash flow status is generally still cautious as the market recovers, shown by reduced liquidity,” said Việt Dragon Securities Co.

“Signs of unsuccessful recovery and weakening at the end of the session, showing that the market trend is still negative. Therefore, investors still need to observe and evaluate the support efforts of cash flow at the support zone of 1,120 – 1,138 points. Currently, it is still necessary to keep the portfolio proportion at a safe level to prevent risks,” it said.

On the Hà Nội Stock Exchange (HNX), the HNX-Index rebounded, up 2.65 per cent, to end at 235.84 points.

During the trading session, nearly VNĐ1.8 trillion worth of shares, equal to nearly 98.8 million shares, was traded on the northern market. — VNS

JP Morgan bond index inclusion: Fitch foresees minimal boost to India’s credit profile

September 27, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

The inclusion could serve to lower funding costs slightly, and support further development of domestic capital markets, Fitch said.However, the direct positive effects on India’s credit profile will likely be marginal in the near term, according to the ratings agency.

Fitch Ratings on Wednesday said the inclusion of Indian sovereign bonds in JP Morgan’s key emerging-market bond indexes will support a diversification of the investor base, but the positive effect on the country’s credit profile will likely be marginal, at least in the near term.

A few days ago, global financial firm JP Morgan said it plans to include Indian government securities ( G-Secs ) into its benchmark emerging market index from June 2024.

The inclusion could serve to lower funding costs slightly, and support further development of domestic capital markets, Fitch said.

However, the direct positive effects on India’s credit profile will likely be marginal in the near term, according to the ratings agency.

India’s high government debt and interest/revenue ratios are weaknesses in its credit profile, Fitch said, adding that the developments that help lower funding costs can have a significant influence on the sovereign’s creditworthiness.

“However, we expect the positive effect on the sovereign rating of India’s inclusion in the JP Morgan Global Bond Index-Emerging Markets ( GBI-EM ) to be small, especially in the near term, as its impact on fiscal credit metrics is unlikely to be significant,” it added.

“The JP Morgan GBI-EM indexes will limit their investments to local-currency government bonds issued under a fully accessible route (FAR), comprising 23 bonds with a total value of about $330 billion,” Fitch noted.

The ratings agency further said inclusion in the indexes could facilitate about $24 billion in passive inflows between June 2024 and March 2025.

Flows could be greater if other indexes also move to include Indian government securities.

The increase in foreign investment in India’s government securities markets is likely to have other positive effects, albeit small in scale, according to Fitech.

“A more diverse investor base could reduce crowding-out risks: if the government becomes less reliant on financing from domestic financial institutions, it could give them greater leeway to provide credit to the private sector. It could also stimulate further capital-market development,” it said.

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Limited impact of global bond index inclusion on credit profile and sovereign rating: Fitch

September 27, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

The inclusion in the index is likely to facilitate $24 billion of inflows between June 2024 and March 2025, with India expected to account for a maximum weight of 10% of the index

Indian sovereign bonds ‘ inclusion in the JP Morgan Global Bond Index-Emerging Markets ( GBI-EM ) may support diversification of the investor base but is unlikely to significantly impact the country’s credit profile and fiscal policy approach in the near term, rating agency Fitch said in a report on Wednesday.

“This could serve to lower funding costs slightly, and support further development of domestic capital markets, but direct positive effects on India’s credit profile will be marginal in the near term,” the report stated.

The inclusion in the index is likely to facilitate $24 billion of inflows between June 2024 and March 2025, with India expected to account for a maximum weight of 10% of the index.

JP Morgan GBI-EM comprises 23 bonds with a total value of $330 billion.

“We expect the positive effect on the sovereign rating of India’s inclusion in the JP Morgan Global Bond Index-Emerging Markets (GBI-EM) to be small, especially in the near term, as its impact on fiscal credit metrics is unlikely to be significant,” the report further stated.

However, it did note that flows could be greater if other indexes also included Indian government securities.

Experts indicate that an inclusion in Bloomberg Global Aggregate Index could bring in another $15 billion in passive flows.

“The resulting increase in foreign investor holdings of central government maturities is likely to be large – they accounted for only around 1.6% ($19 billion) of the market as of Q2-2023, including about $12 billion of the bonds issued under the fully accessible route (FAR),” Fitch noted, highlighting that the impact of foreign investors in debt pricing is likely to be limited.

Fitch was of the view that the move could stimulate further capital market development.

But the rating firm did warn that unless the country improved its fiscal metrics, the move could make sovereign financing costs more vulnerable to volatility in international markets and sentiment.

“The vulnerability of India’s sovereign financing costs to external drivers is currently quite limited… but could increase over time if non-resident holdings of government securities were to rise significantly and the fiscal metrics remain weak,” Fitch noted.

Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!

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Wednesday, 27 Sep, 2023

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Read Complete Print Edition »

Front Page
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Companies
Companies
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Arjun Mohan, who took charge as the new chief executive of the India business at Byju’s last Wednesday, is set to unveil a series of changes at the financially troubled edtech firm, including cutting the headcount by a third or about 4,000-4,500 people to further tighten costs, people aware of the matter said.

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Bigger Ecommerce Sales Set to Light up Volumes

The upcoming festive season sales are expected to bring the steepest online discounts since Covid, up to 60% in certain categories, with several ecommerce majors indicating a push to expand volumes.

VN – US forge partnership to promote start-ups against climate change

September 27, 2023 by bizhub.vn Leave a Comment

Delegates signed the MOU on Wednesday at the Việt Nam’s Posts and Telecommunications Institute of Technology (PTIT). — VNS Photo Ly Ly Cao

The US Department of State, Việt Nam’s Posts and Telecommunications Institute of Technology (PTIT) and VMO Holdings Technology JSC (VMO) on Wednesday signed a memorandum of understanding (MOU) and launched the Coalition for Climate Entrepreneurship (CCE Hub).

The parties agreed to work together to promote start-up activities in the field of climate change by using start-up resources and exploiting technology, thereby minimising climate change and increasing economic growth with clean energy sources.

Speaking at the event, Dorothy McAuliffe, Special Representative for Global Partnerships in the US Department of State, said that the US State Department, along with the hosting and implementing partners, is prepared to use this hub in the coming years to identify sustainability-focused entrepreneurs, convene them in this space, and equip them with the tools and resources they need to scale climate solutions to market.

“We are confident this hub will build upon the momentum of the Comprehensive Strategic Partnership issued between Việt Nam and the US during President Biden’s recent visit as we work together to address the climate crisis,” McAuliffe said.

Trần Quang Anh, Deputy Director of PTIT, hopes that the CCE Hub will create a dedicated creative space designed for creators and start-ups, focusing on sustainable research areas such as clean energy, sustainable agriculture, climate finance, and resilience projects.

The CCE Hub management unit in Việt Nam will strive to be a bridge between the business community and make practical contributions to sustainable environmental development, climate change, and community benefits, he added.

The CCE Hub, located at PTIT, is a dedicated innovation space designed to provide a community space for founders and start-ups. This is the first of its kind in Asia.

The hub’s goal is to facilitate the creation of market-viable businesses that pioneer emerging sustainable solutions or innovate existing ones, focusing on sustainability, which includes clean energy, sustainable agriculture, climate finance, climate resilience and adaptation, and recovery projects.

“The project will help raise awareness of climate issues among Vietnamese people, especially the youth. And even though we have to invest a lot at the moment, the economic potential of the project is huge”, Quang Anh told Việt Nam News.

Earlier this month, Việt Nam and the US announced the establishment of a Comprehensive Strategic Partnership for peace, cooperation, and sustainable development. The two countries’ relationship was upgraded during the state visit of President Biden to Việt Nam.

The president applauded Việt Nam’s climate commitments under its Just Energy Transition Partnership (JETP), as well as the country’s 2050 net-zero greenhouse emissions target. — VNS

American Express Is Oversold

September 26, 2023 by www.forbes.com Leave a Comment

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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. American Express (NYSE: AXP ) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors.

Start slideshow: 10 Oversold Dividend Stocks »

But making American Express Co. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of AXP entered into oversold territory, changing hands as low as $150.16 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of American Express Co., the RSI reading has hit 29.8 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 38.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, AXP’s recent annualized dividend of 2.4/share (currently paid in quarterly installments) works out to an annual yield of 1.57% based upon the recent $153.23 share price.

A bullish investor could look at AXP’s 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on AXP is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

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