HIGHLIGHTED NEWS
According to the Vietnam Association of Realtors (VARS), after two challenging years due to high interest rates and tightened credit, the real estate market has gradually recovered and shown signs of rebounding as the State Bank of Vietnam loosens its monetary policy. Lower interest rates and a policy to inject more capital into the economy are stimulating real estate investment. However, VARS cautions investors to be wary of speculative bubbles driven by certain groups. The State Bank of Vietnam reports that real estate credit continues to grow, mainly in commercial real estate, while consumer real estate credit remains slow to recover. Experts suggest that the Government should urgently implement effective solutions to promote the social housing and affordable housing segments. Additionally, the banking sector should advise the Government to introduce a long-term fixed-interest preferential credit package for young people, supported by the state budget.
TRADING STRATEGY
The stock market declined for the second consecutive session, closing at 1,323 points with the lowest liquidity in over a month. Capital flow remained rotational, focusing on leading stocks in the technology, industrial services, chemicals, and F&B sectors. In contrast, downward pressure was concentrated on stocks in the financial, real estate, basic resources, utilities, and oil & gas sectors. Today, the VN-Index is expected to fluctuate around the 1,320-1,325 point range.
The market remains volatile, with investor sentiment cautious ahead of the NAV closing and the release of Q1/2025 earnings results. Capital continues to rotate, with different sectors rising and falling alternately to stabilize the index while maintaining stock price levels. In the short term, the VN-Index is likely to continue moving sideways within a narrow range before resuming a sustainable medium-term uptrend. Investors are advised to hold positions patiently, take advantage of market dips to increase their medium-term stock holdings, and adopt a flexible approach for short-term trades, focusing on the prevailing capital flow trends.
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