HIGHLIGHTED NEWS
According to the Monetary Policy Department of the State Bank of Vietnam (SBV), between February 25, 2025, and March 18, 2025, 23 domestic commercial banks reduced their interest rates by 0.1%-1% per year, with most cuts at 0.1% across various tenors. SBV reported that the average lending rate decreased by 1.3% in 2023, 1.4% in 2024, and 0.8% since early 2025. Despite the historically low lending rates, banks are still struggling to find borrowers. Meanwhile, SBV has been actively facilitating bank-enterprise connections. Businesses acknowledge that access to credit has improved, and lending rates are now more reasonable, though long-term loan rates remain relatively high. Many businesses have also urged the banking sector to introduce more preferential credit packages, especially for green agriculture and other specialized sectors.
TRADING STRATEGY
The stock market (VN-Index) declined for the second consecutive session, closing at 1,324 points, with trading liquidity remaining on par with the previous session. Selling pressure intensified, particularly from foreign investors targeting large-cap VN30 stocks. However, select stocks in the financial, real estate, chemical, and industrial services sectors provided support in stabilizing the index. VN-Index is expected to fluctuate within the 1,320-1,330 range today.
The market continues to trade within a narrow range near the 1,340-1,350 resistance zone. Increased foreign selling ahead of the VN30F1M futures contract expiration has heightened market caution, weakening buying demand despite many stocks reaching attractive valuations based on fundamentals. Overall, the medium-term uptrend remains intact, but in the short term, caution may persist in the coming sessions before the market returns to a more positive trajectory. Investors are advised to use market dips to increase holdings of strategic stocks, while short-term trades should focus on individual stock movements and capital flow trends.
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