Billionaire Pham Nhat Vuong suddenly has an additional 2,500 billion, many tycoons are at their richest

In the last trading session of the week, July 12, the stock market recorded its third consecutive decline with the weakening of pillar stocks on the floor, including banking, finance and retail.

In the end, the VN-Index fell 3.05 points to 1,280.75 points. This was the third consecutive decline after the index continuously climbed before and approached the 1,300 point threshold in the session on July 9 thanks to demand from domestic individual investors.

Blue-chip stocks were sold off heavily and continued to weaken.

However, the market recorded a rather surprising increase in the prices of some stocks, including the group of 3 "Vin family" codes including Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE) of billionaire Pham Nhat Vuong.

Vingroup shares increased sharply by 650 VND to 41,750 VND/share.

Some other pillar stocks also caused surprises such as FPT of technology giant Truong Gia Binh, VietJet (VJC) of female billionaire Nguyen Thi Phuong Thao, GVR, POW...

Along with the news that the shares of electric car company VinFast (VFS) unexpectedly increased on the US Nasdaq stock exchange by 17.5% in the session of July 11 to 4.9 USD/share, billionaire Pham Nhat Vuong's assets increased by 100 million USD (equivalent to more than 2,500 billion VND) to 4.2 billion USD.

Recently, there has not been much information affecting VinFast and this stock is around 4-4.5 USD/share.

The latest information shows that VinFast is seeking a loan of about 250 million USD from Indonesian banks to build an assembly plant in this country. Previously, on June 27, VinFast held its annual general meeting of shareholders. At the meeting, VinFast dismissed Ms. Pham Nguyen Anh Thu from her position as a member of the Board of Directors. At the same time, VinFast appointed Ms. Nguyen Thi Lan Anh as a member of the Board of Directors. VinFast's Board of Directors currently includes Mr. Pham Nhat Vuong, Ms. Le Thi Thu Thuy, Mr. Ling Chung Yee Roy, Mr. Tham Chee Soon, Ms. Nguyen Thi Van Trinh and Ms. Nguyen Thi Lan Anh.

Although Vingroup shares have increased quite strongly in the last 2 sessions, they are still at the lowest level in 7 years. Vingroup's capitalization is currently at nearly 160 trillion VND (about 6.3 billion USD).

Some other stocks on the floor are at historical peaks.

At the beginning of the week, on July 8, shares of FPT Corporation of Mr. Truong Gia Binh reached an all-time high of VND139,600/share. At that time, FPT had a capitalization of nearly VND204 trillion (equivalent to USD8 billion).

This is a very strong breakthrough of FPT in the past 5 years. In April 2019, when Vingroup's capitalization reached 370 trillion VND, FPT's was at less than 29 trillion VND.

A stock in the "first generation" group on the stock market, REE of Refrigeration Electrical Engineering Corporation chaired by Ms. Nguyen Thi Mai Thanh, has also broken through to a historical peak.

On July 11, REE broke out to a record high of VND71,500 per share. This stock has increased by nearly 50% since the beginning of the year. Its capitalization increased by more than VND10 trillion after more than 6 months to VND33,500 billion.

VN-Index reverses direction with series of good news

In the last session of the week on July 12, the VN-Index decreased in the context of the market receiving many positive news, including the possibility that the USD/VND exchange rate will continue to cool down in the coming time following the change in stance of the Chairman of the US Federal Reserve (Fed) Jerome Powell in the hearing before the US House of Representatives on July 10.

Accordingly, Mr. Powell unexpectedly said that the Fed will not wait until inflation falls to the 2% target before starting to cut interest rates. This is a completely new signal, instead of the stance of persistently pulling inflation to the 2% target that the Fed boss always mentioned before.

The Japanese yen surged to its biggest gain against the dollar in more than two years, rising as much as 2.7% in a single session. Other currencies also rebounded after earlier losses against the greenback.

Mr. Powell's statement also means that the Fed will soon cut interest rates. As of the evening of July 12, according to signals from the CME FedWatch tool, the market is betting on a 96.2% chance that the US Federal Reserve (Fed) will cut interest rates at its meeting on September 18. Of which, there is an 89.8% chance that the Fed will cut interest rates by 25 basis points, from the current 5.25-5.5%/year to 5-5.25%/year. There is a 6.4% chance that the Fed will cut interest rates by 50 basis points. On July 3, the rate of interest rate cut was as low as 67%.

The USD is expected to enter a downward trend as the signal of the Fed's interest rate cut is very clear. By 9:00 p.m. on July 12 (Vietnam time), the DXY index - measuring the greenback's fluctuations against 6 major currencies - fell to 104.2 points, compared to 105-106 points at the end of June.

Previously, Vietnam recorded a series of positive macroeconomic indicators, from growth exceeding forecasts (GDP in the second quarter increased by 6.93%) to exports in the first 6 months and FDI disbursement setting records... Exchange rates have also cooled down recently, interest rates remain low...

However, it is a fact that foreign investors continue to sell Vietnamese stocks strongly. In the session of July 12, foreign investors net sold 777 billion VND worth of stocks after a rare net buying session before, focusing on VHM, MWG, MSN, TCB and FPT.

In the first 6 months of the year, foreign investors net sold nearly 2 billion USD worth of Vietnamese stocks.

Although there are disagreements among investment groups in assessing the prospects of the stock market, it is a fact that the cash flow among the people is assessed to be quite abundant and there is a lack of attractive investment channels.

Part of the domestic cash flow is still looking to stocks.

Many securities companies predict that the stock market is in a period of tug-of-war and may adjust but will increase by the end of the year. VN-Index may reach 1,300-1,400 for VN-Index by the end of 2024.