Research Center

In the short term, the uptrend is still intact thanks to the high demand on Banking stocks. Hence, traders can hold their long position and focus on leading stocks.

The macroeconomic conditions in May become less favorable than in April due to the ongoing outbreak and a global shock of surging commodity prices. Stricter mobility restrictions put heavy pressure on FDI and retail sales performance this month. On the other side, surging global commodity prices are considered the main factor in lifting inflation in May. Furthermore, the trade balance recorded the second consecutive deficit, attributable to the rising import price. However, a modest recovery in the industrial sector somewhat lightens the macroeconomic picture under many internal and external uncertainties.

Last week, foreign selling pressure has started to drop. Breaking down by sectors, selling activity mainly focused on Materials, Financials, and Real Estate whilst Energy and Consumer Staples attracted the most foreign demand. With ETF flow, Vietnam continued to be divested. Particularly, the money outflow was mainly contributed by the divestment across VFMVN Diamond and SSIAM VNFIN Lead ETF.

Buy VN30F2106 at 1,450-1,460 pts area and stop the loss when there is the closing price below 1,435 pts.

In the short term, the uptrend is still intact because of optimistic market sentiment. In addition, the VNIndex closes above the 1,300-pts threshold. Hence, traders can hold their long position and focus on leading stocks.

As mentioned above, the uptrend in the long and short term is still intact. Therefore, investors should continue to hold leading stocks and should not decrease the proportion of those candidates.

Traders should stay on the sidelides and buy only when there is the accurate trigger point.

Alibaba Group and Baring invested USD400mn, equivalent to 5.5% ownership of The CrownX as of end-April. CrownX aims to build LazMall e-commerce platform co-operated by Lazada Vietnam. Besides, MSN acquired 20% stake of Phuc Long Heritage in May and is eyeing building Phuc Long Kiosks (store in-store concept) inside VinMart+.

Despite the contraction, the uptrend is still intact in the short term as the index closes above the 1,300-pts threshold. Hence, traders can hold their long position and focus on leading stocks.

Based on data of 26 May, we expect that FTSE Vietnam ETF will add HSG in the 3Q21, while it will exclude DXG in this quarterly review. Besides, VanEck Vectors Vietnam ETF will not remove ticker but add HSG and PDR in this quarterly review.