Accordingly, the first reason is that a large amount of VND has been withdrawn net from banks as the State Bank of Vietnam (SBV) increases net withdrawal via treasury bills and currency sales in August.
Second, SBV wants to maintain a higher interest rate of VND against USD in the interbank market to reduce pressure on the USD/VND exchange rate in the context of a stronger USD as the Federal Reserve ( FED) maintains its roadmap to increase the key interest rate.
Finally, demand for capital has increased significantly as SBV officially raised the credit growth limit for some commercial banks in September.
However, the sharp rise in the interbank interest rate is believed to be temporary and may stop anytime in the coming weeks due to a drop in exchange rates and supportive actions by SBV like the net injection liquidity in the market at the beginning of September.
“We expect the stock market to stabilize gradually this week. The impressive bullish session at the end of last week has lifted the mood of investors somewhat after a sharp correction recently. The VN-Index will always be at the above the important support level of 1,220-1,240 points next week,” Mr. Dinh Quang Hinh said.
He mentioned the groups with promising commercial prospects this quarter: distribution, food and beverages, electricity, oil, as well as the groups that should benefit from support for the construction of infrastructure via the disbursement of public investments.