HIGHLIGHTS
International News:
The US stock market fell on Monday, August 5, with the Dow Jones index down 2.6%; the S&P 500 down 3% and the Nasdaq Composite down 3.43%. Recent economic data released in the US has raised some concerns for investors about a potential recession. Some analysts have also made arguments to ease investors' concerns, citing income growth supporting spending.
National news:
From July 30th to August 5th, the USD/VND exchange rate at commercial banks continuously decreased, moving away from the ceiling price set by the State Bank of Vietnam. On the morning of August 5th, the State Bank adjusted the central exchange rate to 24,241 VND/USD. Banks such as Vietcombank, Agribank, BIDV, and Vietinbank all lowered their buying and selling rates compared to August 2nd. The State Bank maintained high interbank interest rates to reduce the interest rate differential between USD and VND, combating the depreciation of the Vietnamese dong. The State Bank absorbed a net amount of 48,279 billion VND from the market through repo and treasury bills, with the total volume of treasury bills in circulation reaching 77,500 billion VND, supporting exchange rate and liquidity stability.
TRADING STRATEGY
The stock market has fallen back to 1,188 points with liquidity reaching the highest level in the past two weeks. Selling pressure appeared across most sectors right from the start of the session. The sectors with the most negative impact on the overall index included finance, real estate, chemicals, and energy. Today, the VN-Index may retreat to test the old bottom area of 1,160 - 1,170 points.
The market is still in a downward adjustment phase as selling pressure increases due to concerns about the global economic situation. Investors are advised to manage their portfolios with reasonable proportions, limiting panic selling in the downtrend as most stocks are already in or approaching oversold territory, leaving open the possibility of recovery at any time.
Investor can see the full Newsletter below: