More money than ever due to lower interest rates?

More money than ever

The stock market session on June 2 showed positive signs right from the beginning. Money flowed into the market, causing the VN-Index to increase strongly. The heat became more intense towards the end of the session.

At the close of the stock market session on June 2, VN-Index increased by 12.45 points, equivalent to 1.15% to 1,090.84 points; VN30-Index increased by 18.87 points, equivalent to 1.77% to 1,086.96 points. It has been a long time since VN30-Index recorded a stronger increase than VN-Index. After a series of days of being "inferior" to small and mid-cap stocks, blue-chips have risen.

The entire floor had 245 stocks increasing in price (15 stocks hitting the ceiling), 51 stocks remaining unchanged and only 150 stocks decreasing in price.

However, the focus of the stock market session on June 2 was not the strong increase of the VN30-Index but liquidity. In 2023, the market has never witnessed such a strong cash flow. Trading volume has exceeded the billion-share mark.

Stock 2 6 money much never had interest rate discount 1 — Stocks rose sharply on June 2 as unprecedented cash flow in 2023. One of the reasons for this excitement is the decrease in interest rates. Illustration photo

Specifically, the stock market session on June 2 recorded 1.04 billion shares, equivalent to VND18,349 billion, successfully traded. The VN30 group recorded 292 million shares, equivalent to VND7,221 billion, transferred.

One of the reasons for the influx of money into the stock market is the reduction in interest rates, making savings less attractive.

Blue-chips regained their influence in the stock market session on June 2. Among them, VIB made the most impression when it quickly hit the ceiling. At the end of the session, VIB still maintained its purple color when it increased by VND1,500/share to VND23,050/share.

Along with VIB, banking stocks also “heated up” after a series of days of significant price declines due to information about interest rate reduction. VCB increased by VND1,000/share, equivalent to 1.1% to VND94,900/share, CTG increased by VND700/share, equivalent to 2.5% to VND28,650/share, BID increased by VND800/share, equivalent to 1.8% to VND44,700/share,…

On the Hanoi Stock Exchange, cash flow did not flow in as strongly as on the Ho Chi Minh Stock Exchange, so the indices only increased slightly.

At the close of the stock market session on June 2, the HNX-Index increased by 2.06 points, equivalent to 0.92% to 226.03 points; the HNX30-Index increased by 1.45 points, equivalent to 0.35% to 419.68 points. There were 132 million shares, equivalent to 1,869 billion VND, successfully transferred.

Hong Kong stocks surge

Asia- Pacific shares were mostly higher as traders awaited the U.S. May jobs report, with Hong Kong's Hang Seng index trading as high as 4% and leading gains in the broader region.

The consumer and real estate sectors drove the index higher, with Longfor Investment Holdings up 14.48% and Zhongsheng Automotive Group up more than 8%. Tech giants Baidu, JD.com and Alibaba also rose.

The index closed 4.02% higher at 18,949.94.

“The Hong Kong stock market has experienced a big recovery today,” said Kenny Ng from Everbright Securities International.

“From a technical perspective, the Hang Seng index was oversold before the recovery,” he said, adding that this suggests that the recovery seen today could be technically driven.

Elsewhere, the Kospi closed 1.25% higher as South Korea's consumer inflation cooled to a 19-month low in May, falling for a fourth straight month. The Nikkei 225 rose 1.21% to 31,524.22.

Mainland China's Shanghai Composite rose 0.79% to close at 3,230.07 while the Shenzhen Component gained 1.497% to end at 10,998.07.

In Australia, the S&P/ASX 200 rose 0.48% to close at 7,145.1.

Overnight in the United States, all three major indexes rose, with the S&P 500 and Nasdaq Composite closing at their highest levels since August. The Dow Jones Industrial Average rose 0.47%.

The House passed a bill to raise the debt limit and set a high government spending cap late Wednesday, sending the bill to the Senate just days before the U.S. default deadline on Monday. Senate Majority Leader Chuck Schumer said the chamber would pass the bill Thursday evening.

Investors are also awaiting Friday’s May jobs report, with recent data pointing to a strong labor market despite the Federal Reserve’s aggressive plans to raise interest rates.

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