HIGHLIGHTED NEWS
Deputy Prime Minister Ho Duc Phoc signed Decision 2014/QD-TTg of the Prime Minister approving the Project to Upgrade Vietnam's Stock Market. Accordingly, the short-term goal of the project is to fully meet the criteria for upgrading from a frontier market to a secondary emerging market of FTSE Russell in 2025 and maintain the secondary emerging market rating of FTSE Russell. In the long term, Vietnam aims to meet the criteria for upgrading to an emerging market of MSCI and an advanced emerging market of FTSE Russell before 2030. To achieve the set goals, it is necessary to resolve the issue of requiring advance payment for securities purchases and transparency of information on the maximum foreign ownership ratio to meet the criteria for upgrading to a secondary emerging market of FTSE Russell. At the same time, it is necessary to deploy many groups of tasks and solutions to maintain the short-term ranking, including simplifying procedures for registration and opening accounts for foreign investors, strengthening the information system between custodian banks and securities companies, implementing the mechanism of total transaction accounts (OTA), enhancing the capacity of the transaction system, enhancing the management and supervision capacity of securities market management agencies and proposing solutions to stabilize the foreign exchange market. In addition, the project also sets out a group of tasks and solutions to meet the criteria for upgrading to a high-level emerging market of FTSE Russell, an emerging market of MSCI, creating a foundation for the Vietnamese stock market to gradually integrate deeply into the global financial system.
TRADING STRATEGY
The stock market recovered to 1,667 points with liquidity slightly decreasing below the weekly average. Divergence occurred on a large scale. Cash flow tended to seek leading stocks in the real estate, basic resources, F&B sectors, and small and medium-cap stocks in the industrial services, construction and materials sectors. On the contrary, the downward pressure was mainly concentrated in stocks in the finance and technology sectors. Today's VN-index is likely to fluctuate around the 1,660-1,675 point area.
The market is currently in the process of recovering after a downward adjustment to test the psychological zone around the 1,600 point mark. The average liquidity being only low compared to the previous period has helped the supply-demand balance to stabilize quickly after the fluctuations. Foreign investors continue to net sell at high intensity. VN-Index currently has the opportunity to enter a new uptrend if the supply-demand balance still shows stability even when fluctuations appear or there is a sudden change in cash flow thanks to the support of domestic and foreign macroeconomic information. Investors should temporarily pay attention to controlling the portfolio proportion at a reasonable level. Reinvestment activities should be prioritized when the market has a stable trend or transactions are concentrated in a number of individual stocks in the basic group, the business results prospect for the third quarter of 2025, there is supporting cash flow or approaching the support price zone.
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