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Tuesday, October 22, 2024

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Stock market amid uncertainties

The stock market is one of the sectors most affected by rising fears of conflict and unclear monetary policy directions. Cash flows are likely to shift towards safer investment channels. What is driving the pressure? On the first trading day of October, the VN-Index surged past the 1,300-point mark, reaching a high of 1,302 points. However, profit-taking pressure soon mounted, pulling the index back to close at 1,292 points, a modest gain of just four points. By October 7, the index had dropped below 1,265 points at times, shedding 27 points over four trading days, with a sharp 19-point drop in just two sessions on October 3 and 4. The primary cause of this decline was the launch of 180 long-range missiles by Iran against Israel on the night of October 1, sparking fears of an imminent military confrontation. Investors are worried that a direct conflict between the two nations could lead to a more widespread war in the Middle East, shaking global markets. This fear also rattled international markets, with the U.S. Dow Jones Industrial Average losing 398.51 points on October 7, further dampening investor sentiment at home. Following Iran’s missile attacks, Israel retaliated with an airstrike on Beirut, […]
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