HIGHLIGHTS
International News:
The US stock market rebounded on Tuesday, August 6, ending a three-session losing streak. The S&P 500 and Nasdaq Composite indexes rose by 1.04% and 1.03%, respectively, closing at 5,240 points and 16,366.9 points. Meanwhile, the Dow Jones index also increased by 0.76% to 38,997.7 points. All sectors posted gains, led by real estate stocks.
National news:
Prime Minister Phạm Minh Chính held a meeting with leaders of the State Bank of Vietnam (SBV) and several ministries to discuss monetary policy management. During the meeting, the Prime Minister emphasized that over VND 15 trillion in bank deposits needs to be actively directed into production and business rather than remaining idle in banks. The SBV reported that the average lending interest rate has decreased to 8.3% per annum, while the deposit interest rate has dropped to 3.59% per annum. Credit growth across the system has recovered since the end of March and continued to rise, reaching 6% by the end of Q2 2024. By the end of July 2024, outstanding credit reached nearly VND 14.33 trillion, up 14.99% compared to the same period last year.
TRADING STRATEGY
The stock market positively recovered to the 1,210-point mark, with liquidity falling below the previous week's average. Selling pressure weakened, and capital flow spread across most of the market, led by stocks in the financial, F&B, oil and gas, and chemical sectors. The VN-Index is likely to fluctuate around the 1,205 - 1,215 point range today.
The market is initially showing positive signals after a series of strong corrective sessions. It is likely that this will be the mid-to-long-term bottom for the VN-Index. In the early phase of the recovery, the market may lean towards a cautious upward movement before divergence occurs. Investors are advised to prioritize accumulating and holding stocks with stable fundamentals and attractive valuations. Notable sectors include finance, basic resources, oil and gas, and chemicals.
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