More money than ever due to lower interest rates?

More money than ever

The stock market session on June 2 showed positive signs right from the start. Money flowed into the market, causing the VN-Index to increase strongly. As the session ended, the heat became more intense.

At the close of the stock market session on June 2, VN-Index increased by 12.45 points, equivalent to 1.15% to 1,090.84 points; VN30-Index increased by 18.87 points, equivalent to 1.77% to 1,086.96 points. It has been a long time since VN30-Index recorded a stronger increase than VN-Index. After a series of days of being "inferior" to small and mid-cap stocks, blue-chips have risen.

The entire floor had 245 codes increasing in price (15 codes hitting the ceiling), 51 codes remaining unchanged and only 150 codes decreasing in price.

However, the focus of the stock market session on June 2 was not the strong increase of the VN30-Index but rather liquidity. In 2023, the market has never witnessed such a strong cash flow. Trading volume has exceeded the billion-share mark.

Stock 2 6 money much never had interest rate discount 1 — Stocks on June 2 rose sharply as cash flowed in at an unprecedented rate in 2023. One of the reasons for this excitement was the drop in interest rates. Illustrative photo

Specifically, the June 2 stock market session recorded 1.04 billion shares, equivalent to VND18,349 billion, successfully traded. The VN30 group recorded 292 million shares, equivalent to VND7,221 billion, transferred.

One of the reasons for the influx of money into the stock market is the reduction in interest rates, making savings less attractive.

Blue-chips regained their influence in the stock market session on June 2. Among them,VIB made the most impression when it quickly hit the ceiling. At the end of the session, VIB still maintained its purple color when it increased by VND1,500/share to VND23,050/share.

Along with VIB, banking stocks also "heated up" after a series of days of significant price declines due to information about interest rate reduction. VCB increased by VND 1,000/share, equivalent to 1.1% to VND 94,900/share, CTG increased by VND 700/share, equivalent to 2.5% to VND 28,650/share, BID increased by VND 800/share, equivalent to 1.8% to VND 44,700/share,...

On the Hanoi Stock Exchange, cash flow did not flow in as strongly as on the Ho Chi Minh Stock Exchange, so the indices only increased slightly.

At the close of the stock market session on June 2, the HNX-Index increased by 2.06 points, equivalent to 0.92%, to 226.03 points; the HNX30-Index increased by 1.45 points, equivalent to 0.35%, to 419.68 points. 132 million shares, equivalent to VND 1,869 billion, were successfully transferred.

Hong Kong stocks surge

Asia- Pacific shares were mostly higher as traders awaited the U.S. May jobs report, with Hong Kong's Hang Seng index trading as high as 4% and leading gains in the broader region.

The consumer and real estate sectors drove the index higher, with Longfor Investment Holdings up 14.48% and Zhongsheng Automotive Group up more than 8%. Tech giants Baidu, JD.com and Alibaba also rose.

The index closed 4.02% higher at 18,949.94.

“The Hong Kong stock market has experienced a big recovery today,” said Kenny Ng from Everbright Securities International.

“From a technical perspective, the Hang Seng index was oversold before the recovery,” he said, adding that this suggests that the recovery seen today could be technically driven.

Elsewhere, the Kospi closed 1.25% higher as South Korea's consumer inflation cooled to a 19-month low in May, falling for a fourth straight month. The Nikkei 225 rose 1.21% to 31,524.22.

Mainland China's Shanghai Composite rose 0.79% to close at 3,230.07 while the Shenzhen Component jumped 1.497% to end at 10,998.07.

In Australia, the S&P/ASX 200 rose 0.48% to close at 7,145.1.

Overnight in the United States, all three major indexes rose, with the S&P 500 and Nasdaq Composite closing at their highest levels since August. The Dow Jones Industrial Average rose 0.47%.

The House of Representatives passed a bill late Wednesday to raise the debt limit and cap government spending, sending the bill to the Senate just days before the US default deadline on Monday. Senate Majority Leader Chuck Schumer said the chamber would pass the bill Thursday evening.

Investors are also awaiting Friday's May jobs report. Recent data points to a strong labor market despite the Federal Reserve's aggressive plans to raise interest rates.

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