Interest rates down, stocks still down
The most notable information in the financial market was that late in the afternoon of May 23, the State Bank announced a reduction in operating interest rates. Accordingly, the "ceiling" interest rate for 6-month term deposits decreased by 0.5%/year to only 5%/year.
The interest rate cut is the information that the market is waiting for because it will help businesses overcome difficulties. However, unlike the two recent interest rate cuts, in the stock market session on May 24, the VN-Index did not receive much support.
VCBS Securities Company commented that the tug-of-war and balance were recorded in the morning session with the number of stocks increasing and decreasing points being almost equal. However, selling pressure in many large-cap stocks such as VCB, VNM, CTG had a negative impact on the score, causing the VN-Index to reverse and fall below the reference level.
Lower interest rates are a good sign for businesses, but that doesn't mean the VN-Index will be "rescued". At the close of the stock market session on May 24, the market was still in the red. Illustrative photo
On the other hand, although differentiation was still evident, active buying liquidity in today's session was not really outstanding. In particular, the most prominent was the group of media stocks with an increase of approximately 3%. The alternating increase and decrease between stock groups was still the main development in the afternoon session, causing the general index to not have many changes, only fluctuating within a narrow range around the 1,065 point area.
Foreign investors continued to maintain net selling momentum throughout the session with liquidity of 522 billion, focusing on selling HPG, VND, NVL.
Closing the stock market session on May 24, VN-Index decreased by 4.06 points, equivalent to 0.38% to 1,061.79 points; VN30-Index decreased by 6.5 points, equivalent to 0.61% to 1,061.55 points.
The entire floor had 168 stocks increasing in price (10 stocks hitting the ceiling), 55 stocks remaining unchanged and 215 stocks decreasing in price. The VN30 group had only 5 stocks increasing in price, 2 stocks remaining unchanged and 23 stocks decreasing in price.
Liquidity on the stock market on May 24 continued to be high. Up to 794 million shares, equivalent to VND13,770 billion, were successfully traded. However, the VN30 group only had 185 million shares, equivalent to VND4,772 billion, transferred.
VCBS predicts that the fluctuations and alternating increases and decreases will continue before entering a new uptrend.
“We recommend that investors continue to maintain their stock weight, closely follow the market, and take advantage of strong fluctuations to disburse to increase the weight of stocks that are available in the portfolio and are attracting good demand such as securities and oil and gas,” VCBS advised investors.
Asian stocks fall sharply
Asia- Pacific markets slid on Wednesday, with the Shanghai Composite ending the session down 1.28% at 3,204.75, its lowest since Jan. 13. The Shenzhen Component closed 0.84% lower at 10,920, erasing all gains this year to fall to its lowest since Dec. 23 last year.
Hong Kong's Hang Seng Index posted its second straight daily decline, closing down 1.77% at 19,087, while the Hang Seng Tech Index fell 2.1%.
In Japan, the Nikkei 225 also posted a second straight daily loss, closing down 0.89% at 30,682.68 and the Topix ended down 0.42% at 2,152.4, even as business sentiment among domestic manufacturers turned positive for the first time in 2023, according to the Reuters Tankan survey.
South Korea's Kospi snapped a seven-day winning streak to close the day at 2,567.45, while the Kosdaq ended down 0.43% at 855.46. In Australia, the S&P/ASX 200 fell 0.63% to 7,213.8, its lowest close since last Wednesday.
New Zealand shares reversed losses, while the New Zealand dollar strengthened against the US dollar after the country's central bank raised its benchmark policy rate to 5.5%, in line with expectations of economists polled by Reuters. The S&P/NZX 50 Gross Domestic Product closed up 0.23% following the move.
The country also saw retail sales fall 4.1% year-on-year in the first quarter, the second straight quarterly decline following a 4% decline in the quarter ended December.
Source
Comment (0)