Topic: SSI

Figures from SSI show that October was a successful month for exchange-traded funds (ETFs), which posted total net inflows of more than VND3.1 trillion ($125.2 million); the second-highest since the beginning of 2022 and just under the May figure. ETFs have attracted an additional VND13.2 trillion ($532.9 million) since the beginning of the year.

SSI Securities Company sees positivity in sugar stocks to the end of the year based on many factors, in particular taxes imposed on Thai competition.

The interbank VND interest rate fell sharply during the week of August 8-12 from a large volume of bills maturing and money being pumped back into the market, resulting in the difference between VND and USD interest rates becoming negative. According to SSI Securities, the State Bank of Vietnam is implementing a relatively flexible monetary policy via open market operations in order to balance inflation, exchange rates, and interest rates.

Banks have been permitted to increase their charter capital and this has had a positive impact on the banking industry in general and banking stocks in particular.

SSI has forecast that deposit interest rates may increase 0.5-0.7 percentage points over the final two quarters of the year and the year as a whole, adding to the existing 1-1.5 per cent per annum rate. Vietcombank Securities Company (VCBS), meanwhile, said the race to increase deposit rates will affect profits to the end of the year.

SSI Research believes that 2023 will be an investment-driven year of growth in the stock market with strong disbursement of economic stimulus packages while FDI will remain an important driver of the country’s growth. Positively-rated industries include industrial real estate, insurance, information technology, and healthcare.

According to the SSI Securities Company, outstanding loans for Covid-19 restructuring are falling and large banks have made adequate provisions for such debts. Therefore, debt restructuring due to Covid-19 is not overly concerning, but risks to the banking sector may actually come from loans relating to real estate and corporate bonds.

SSI Research has forecast that PNJ may be excluded from the VN30-Index because its stock capitalization is insufficient, while VIB may take its place as it has the largest capitalization outside of the VN30.

The real estate stock price index had fallen 25 per cent since the beginning of the year as of mid-June, equaling the decline of the VN-Index. SSI Research therefore believes real estate stock prices have come down to an attractive level for long-term holding.