1. Financial market News

VN-Index hits six-month peak

The VN-Index surged in its fifth straight gaining session by 1.37 percent to 903.97 points Thursday, reaching its highest point since February 24. The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw 235 tickers gaining and 170 losing. Total trading volume climbed nearly 30 percent over the previous session to VND7.66 trillion ($329.67 million), far higher than August’s average of VND5 trillion per session. The benchmark index had, within the first 15 minutes of trading, when At-The-Open orders are being executed, climbed above 900 points, considered a key psychological resistance zone by analysts, before fluctuating upwards another four points. Daily cash flow in the past two weeks on the HoSE have generally hovered above VND6 trillion, typically seen during the bourses busiest periods, despite warnings by various securities firms that the stock market may be overvalued and not reflect Vietnam’s true macroeconomic picture.

Detailed information here.

2. Banking news

SMEs want sharper interest rate cuts

Small and medium enterprises (SMEs) need capital to revive their production, but cannot access bank loans or receive support from local credit guarantee funds. Voters from Gia Lai province have sent a petition to the State Bank of Vietnam (SBV), requesting that the agency encourage commercial banks to share difficulties with businesses by slashing interest rates by another 2 percent or more for clients affected by Covid-19. In fact, as per the request by the prime minister and SVB, many commercial banks have launched credit programmes with preferential interest rate of 7 percent per annum. However, SMEs complain they cannot access preferential loans. They still have to borrow money at interest rates of around 10 percent per annum. However, the decisions to cut interest rates have not had an impact on a large scale.

Detail information here.

3. International finance News

World economies are still quarters away from returning to pre-coronavirus levels, warns Amundi

Economies around the world may still be quarters away from recovering to their pre-pandemic levels, though the worst of the economic shock appears to be over, according to analysts at Amundi Asset Management.

Detail information here.