Most securities companies made differing evaluations compared to actual market performance in September due to the volatility caused by Covid-19, with Yuanta Securities Vietnam making contradictory forecasts. VnDirect, however, still believes that October is a good time to acquire shares.
In order for banks to continue to support businesses, especially those facing difficulties and that are sub-prime, it is necessary to have mechanisms and policies at a higher level to protect banks against potential huge bad debts in the future.
Net sales by foreign investors on Vietnam’s stock exchange were 17 times higher in the first nine months of 2021 than in the same period last year; a new record. Experts expect capital flows from foreign investors to fully return in mid-2022.
The poor performance of global stocks has partly affected Vietnam’s stock market, but the prices of oil, gas, and fertilizer stocks have still increased.
It has been forecast that the interest income earned in the banking system will decline in the third quarter of 2021, while bad debts will tend to increase. Investors need to select bank stocks with solid profitability to avoid risks.
Vietnam’s stock market is still attractive long term due to the country’s stable macro environment, low interest rates and inflation, and lower valuation base than other countries in the region.