Trade tensions ease, global stocks recover
(Baonghean) - The global financial market in the week of September 10-14, 2018 witnessed a recovery in most continents when the Sino-US trade tension temporarily eased.
Specifically, the Dow Jones and S&P 500 indexes on Wall Street closed the week up 1.15% and 0.97%, quite positive developments after the previous week's decline. The main indexes of the European and Asian markets last week also recorded increases compared to the first session of the week.
Also last week, the US dollar depreciated against other strong currencies, as well as emerging market currencies, including those in Southeast Asia. This reduced selling pressure on emerging markets, reduced capital outflows from these markets, and stimulated net buying again with capital waiting for investment opportunities. In fact, in the Vietnamese market, the continued strong net buying of more than VND 893 billion by foreign investors last week was the main factor creating the Index's upward momentum this week.
At the end of the week, VnIndex and HNXIndex recorded an increase of 2.16% and 0.61% compared to the first session of the week. The return of net buying by foreign investors, as well as the positive sentiment of domestic investors, helped the transaction value last week increase by 27% compared to the previous week, recording an average liquidity/session of more than VND 5,964 billion.
In the derivatives market, total market liquidity increased sharply by 41% with trading volume reaching 491,083 contracts, with new OI contract volume reaching 82,049 contracts.
VNIndex had its 6th consecutive session of increase in the context of the recovery of the world financial market, the temporary weakening of the USD and the return of net buying by foreign investors. The selling pressure at the psychological resistance zone of 1,000 points is still very strong, but with the current positive accumulation, overcoming this level is only a matter of time. The internal market developments are still very positive with many stocks increasing in price and continuously appearing stocks surpassing the short-term peak zone at the end of August. Ms. Nguyen Phan Cam Thuy, Senior Investment Consultant, Securities CompanyVNDIRECT, commented: "We believe that developments are still favorable for the short-term recovery trend to continue towards the target in the MA200 area of 1,022 points - 1,040 points (peak area in early June 2018)".
