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The VNIndex crosses the 1,120-pts threshold along the liquidity high level, implying a strong uptrend market in the future. Therefore, investors should open long positions.

The money market situation this week was mostly unchanged heading to June FOMC except for interbank rates, especially below 6-month tenors, sliding due to T-bill maturity. The G-bond yield was flat, and USDVND recorded a slight increase after four consecutive weeks of reduction. Looking ahead to next week, we predict that liquidity conditions will remain soft due to the insignificant change in lending activities, although there is no more T-bill maturity. Furthermore, it seems more likely that Fed will pause the rate hike in the upcoming June’s meeting, providing SBV more space to follow easing policies to promote economic growth in the future.

Total May steel sales volume posted 619,165 tonnes, increasing by 5.6% yoy and 15.6% mom thanks to the strong export. The total May domestic sales volume diminished by 19.1% yoy but upped 3.1% mom to 390,548 tonnes.

We expect foreign ETFs to sell HPG and NVL the most with net values of 11.3 million shares and 10.9 million shares. On the buy-side, EIB will be expected to buy heavily with 10.3 million shares. The new weights will be effective on 19 May 2023.

Last week, trading volume increased, staying above 4-week average, recording at 80mn shares. By underlying asset, covered warrants which have HPG and STB as the underlying asset continued to attract the most of trading interest from both domestic and foreign investors.

In the short term, the VNIndex has tested the previous resistance level. Accordingly, the uptrend will be consolidated if this index crosses the 1,120-pts threshold. Therefore, investors should open long positions and observe the next movements of the market.

Selling pressure from foreign investors remained at a high level. The net selling value was USD24mn. Outflow pressure has dropped across Vietnam with a net outflow of UDS1mn. Although the flow of money across Vietnam is still weak, inflow has come back across major ETFs which is the first sign for the positive flow of money in upcoming weeks.

Long positions on VN30F2306 should not be closed and stop the loss when there is the closing price below 1,050 pts level (Hourly chart).

The rebound phase is confirmed as well as bullish momentum is active. Thus, traders could open the long positions on leading stocks. However, position size should be low due to the active selling pressure near 1,120 pts area.

Long positions on VN30F2306 should not be closed and stop the loss when there is the closing price below 1,050 pts level (Hourly chart).