Home Business Market Watch: Domestic and International Financial Market News for November 14

Market Watch: Domestic and International Financial Market News for November 14

by Asia Insider

**Foreign Exchange Market:**

On the foreign exchange market, the State Bank of Vietnam (SBV) listed the central exchange rate at 24,020 VND/USD on November 14, an increase of 5 dong compared to the beginning of the week. The spot buying rate remained stable at 23,400 VND/USD, while the spot selling rate was listed at 25,171 VND/USD, 50 dong lower than the rate ceiling. In the Interbank Market (IBM), the closing exchange rate was 24,360 VND/USD, down 19 dong from November 13. The free market exchange rate increased by 20 dong in both buying and selling directions, trading at 24,620 VND/USD and 24,720 VND/USD.

**Interbank Money Market (IBM):**

On November 14, the average offered interest rate for VND in the IBM decreased significantly, ranging from 0.18 to 0.23 for terms of 1M and below compared to the beginning of the week. The average offered interest rate for USD in the IBM decreased by 0.01 to 0.02 for most terms, except for the 1M term. Rates stood at 5.04% (ON), 5.14% (1W), 5.25% (2W), and 5.35% (1M), maintaining stability. Government Bond (TPCP) yields remained unchanged for 3Y and 15Y terms, while decreasing for other terms.

**Open Market Operations:**

In the recent trading session, the SBV auctioned 1,000 billion VND with a term of 7 days and an interest rate of 4.0% on the collateral channel, but there was no winning bid. There was no outstanding amount on this channel. The SBV did not bid for SBV bonds. On November 14, 17,950 billion VND matured. Consequently, the SBV injected a net amount of 17,950 billion VND into the market, reducing the total outstanding bonds in the market to 115,249.8 billion VND.

**Stock Market:**

The latest stock market session witnessed a return of capital flow. The VN-Index increased by 9.66 points (+0.88%) to 1,109.73 points, the HNX-Index added 1.32 points (+0.58%) to reach 227.43 points, and the UPCoM-Index inched up by 0.67 points (+0.78%) to 86.65 points. Market liquidity improved with a trading value of nearly 19,000 billion VND. Foreign investors continued to be net sellers with over 357 billion VND across all three exchanges.

**Domestic News:**

According to the Ministry of Finance, government revenue in the first 10 months reached 1,398.7 trillion VND, a 9.2% decrease compared to the same period in 2022, equivalent to 86.3% of the estimate. Of this, domestic tax revenue reached approximately 88.9% of the estimate, and revenue from state-owned enterprises reached about 83.3% of the estimate. Domestic revenue decreased by 5.9%, revenue from crude oil decreased by 19.8%, and the balanced budget from export-import activities decreased by 21.9%. Regarding government expenditures, in the first 10 months, they reached 1,357.6 trillion VND, equivalent to 65.4% of the estimate, an 11.4% increase compared to the same period in 2022.

**International News:**

  • The Consumer Price Index (CPI) in the United States remained unchanged in October, with increases of 3.2% and 4.0% year-on-year for the overall CPI and core CPI, respectively.
  • The UK’s Office for National Statistics (ONS) reported an increase in unemployment benefit claims and an unchanged unemployment rate of 4.2% in September.
  • The National Australia Bank (NAB) survey revealed a slight decrease in business confidence, dropping from 0 to -2 points in October.

**Exchange Rates on November 14:**
– USD = 0.919 EUR (-1.70% d/d); EUR = 1.088 USD (1.70% d/d)
– USD = 0.80 GBP (-1.78% d/d); GBP = 1.250 USD (1.78% d/d)
– GBP = 1.149 EUR (0.08% d/d); EUR = 0.871 GBP (-0.08% d/d)

Source: Vietnam Insider

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