Research Center

Selling pressure decreased strongly in the recent sessions but demand is still weak, causing the stock market to close around the reference point with liquidity remaining at a low level. This means investors’ sentiment is still quite cautious. Besides, the downside risk is still intact due to the VNIndex maintaining to end below the 50-period moving average. Therefore, investors should reduce a portion of stocks in their portfolio to the safety threshold and wait for the next signal.

We expect that the inflow across Vietnam could decrease in upcoming quarters due to the diminish of demand on foreign ETFs, but the net flow would be flat cause the outflow on ETFs could be covered by the inflow from others.

Long-term, fast growth in demand for electricity opens up a lot of opportunities for industries in the power system. Regarding the power generation activity, especially, we highly evaluate the growth potential of the two sources of gas turbiness and wind power in the mid- and long-term based on analyzing the two fundamental characteristics of the power system in terms of (1) stability and (2) economic efficiency. we rate BUY on NT2 (TP: VND29,400, upside: +20%), QTP (VND23,400, upside: +54%), and HOLD on GEG (VND13,000). In addition, we positively value POW's growth potential after 2024, when NT3 and NT4 plants begin commercial operation.

The money market this week witnessed several corrections following SBV’s bill offerings. Interbank rates seemed bottom out with overnight and one-week tenors increasing by 15bps and 30bps compared to the end of the previous week, respectively. More relevantly, the interest rate for 1-month tenor halted the downturn and even popped up to 1.20% p.a. in some trading points. Similarly, the 10-year G-bond yield rose by 8bps with a 2-time-higher trading value, indicating a significant shift in the appetite of fixed-income investors. Notably, USDVND, the cause of recent SBV’s OMO practices as per our prediction, cooled down by 0.12% compared to last week. We predict the upward pressure on interbank rates to increase when SBV probably issues more bills.

The next time, the CW market is likely to "cool down" as the underlying market has confirmed a short-term consolidation phase.

The stock market recoveries slightly during the session with low liquidity, showing investors’ sentiment is still quite cautious. The downside risk is still intact as the VNIndex maintains to end below the 50-period moving average. Therefore, investors should reduce a portion of stocks in their portfolio to the safety threshold and focus on leading stocks.

In this case, investors should reduce a portion of stocks in their portfolio to the safety threshold. The next time, if the VNIndex successfully surpasses the important resistance threshold of 1,200-pts with high liquidity, this will be the opportune moment for investors to begin disbursing their capital again.

Oversold condition is reached as well as volatile period is active. New short positions are risky and selling point carries bad risk/reward ratio. Thus, traders should stay on the sidelines and wait for the favorable trading point.

Economic activities accelerated further in 3Q23 mainly thanks to the impressive improvement in export activities and the solid investment from foreign and government sectors. On the upside, it seems the negative impact of external factors on Vietnam's economy has become less severe when the end of the global trajectory of rate hikes was counting down. Export turnover recorded a much softer decline, and FDI disbursement preserved its acceleration. However, domestic consumption continued decelerating due to a slowing recovery in foreign tourism, the lingering hardship of employees in the manufacturing sector, and the limited impact of fiscal measures. For future developments, we expect the export activities to recover and overwhelmingly drive the economy to accelerate in the next quarter.

The stock market remains to have a high volatility session as demand in the afternoon to help the VNIndex ends around the reference points with low liquidity. The downside risk is still intact as this index maintains to end below the 50-period moving average. Therefore, investors should reduce a portion of stocks in their portfolio to the safety threshold and focus on leading stocks.