Research Center

The money market this week features ample liquidity and cautiousness of participants. On one hand, massive T-bill maturity significantly softened liquidity condition, which was already excessive under the slowing lending activities, causing interbank rates to lower further. On the other hand, money market participants seemed cautious heading to June’s FOMC meeting, although the meeting could provide a milestone of Fed pivot. G-bond yield returned to the reduction, while USDVND rose slightly for the fourth consecutive week.

The uptrend continues as the VNIndex still ends the session above the major MAs. However, the selling pressure may occur around the 1,100-pts threshold. Therefore, traders should open small long positions and wait for the next signals.

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).

Last week, trading volume increased, staying above 4-week average, recording at 83mn shares, a 2-month high. 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.

Selling pressure from foreign investors remained at a high level. The net selling value was USD54mn. With ETF flow, outflow was active. Net outflow was USD9mn. There is still not a good sign for the stable inflow and outflow could be active 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).

In this case, the downside is reversed in the short term, but the selling pressure is still intact around the 1,100-pts threshold. Therefore, traders should open small long positions and wait for the next signals.

The VNIndex crosses the 1,080-pts threshold going up. That implies a bullish market. Therefore, investors should open small long positions.

The Chinese economy has made a rebound in 2023, with major economic indicators seeing steady expansion, offering the latest evidence that the world's second-largest economy is set to secure a powerful recovery this year. China's GDP grew by 4.5% in the first quarter of 2023, 0.5% higher than market expectations. Notably, it marked the fastest pace of growth since the first quarter of 2022, indicating that China’s economic recovery is picking up steam

The VNIndex rebounds because of high demand at low prices, showing the cash flow. That is bullish signals. The uptrend will be still confirmed when this index surpasses the threshold of 1,080 points. Therefore, investors should stand aside and observe the next movements of the market.