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Stock market to revive
Although the VN-Index traded in a narrow range during June and early sessions of July, securities companies expect this month to witness a better performance of the local stock market, given stable economic conditions as well as better second quarter business results of listed firms.
Au Viet Securities Company said the positive news was that banks had agreed to lower lending rates, which would help companies access cheap capital for business and production activities for the rest of the year.
Meanwhile, stocks have recently returned to attractive price levels and the VN Index to around a 500-point level. Given stable economic conditions and that many companies had disclosed positive business results, the market is expected to show signs of improvement soon.
SME Securities Company said in its July report that after a long time of trading in a narrow range, investors now hope the market will improve in July.
If business results of enterprises are positive, such a scenario could come true.
This is because the market this month was affected by three factors: second quarter business results of enterprises; the macro economy; and the global economy. Company results, however, could mainly affect the market.
However, SME Securities said if the macro-economy did not experience a breakthrough,enterprises'efforts would only support short-term growth.
Viet Nam International Securities Company, however, said that recent poor performances on global stock markets had affected local investors'decision making, so it was too soon to hope for a strong run this month.
However, it would be unlikely for the market to have a deep fall due to the positive business results of listed enterprises.
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