HIGHLIGHTED NEWS
On the occasion of President Donald Trump and Prime Minister Pham Minh Chinh attending the 47th ASEAN Summit in Kuala Lumpur, Vietnam and the US reached a number of important agreements related to the Reciprocal Trade Agreement. Accordingly, the US will maintain a 20% reciprocal tax rate on goods originating from Vietnam and consider applying a 0% tax rate to some products. In return, Vietnam will grant preferential market access to almost all US agricultural and industrial exports.
In the draft amendments to a number of articles related to the electricity purchase and sale mechanism between renewable sources and large customers, the Ministry of Industry and Trade proposed that households and organizations installing "self-produced, self-consumed" rooftop solar power systems will be allowed to sell surplus electricity up to 50% of the actual electricity generated, instead of the current level of 20%.
TRADING STRATEGY
The stock market closed in a slight red at 1,683 points with liquidity improving compared to the previous session but still below the weekly average. Selling pressure tends to increase in leading stocks in the banking, financial services, industrial services, and basic resources sectors. Meanwhile, cash flow shows signs of improvement in small and medium-cap stocks in the real estate, construction, and materials sectors, along with some large-cap stocks in the technology and retail sectors. The VN-Index today is likely to fluctuate around the 1,675-1,700 point range.
The market is divided and fluctuates continuously during the session in the area approaching the 1,700 point mark. The general cautious sentiment has caused the temporary selling pressure to show no signs of stopping in the group of large-cap stocks with high generality. Cash flow circulates with the destination being individual stocks in the small and medium-cap group. Overall, the market is in the phase of regulating and stabilizing the balance of supply and demand in anticipation of more important domestic and foreign macroeconomic information. Therefore, in the short term, VN-Index is likely to continue to fluctuate in differentiation in the area around the 1,700 point mark. Investors should pay attention to reviewing and restructuring short-term portfolios according to price fluctuations of individual stocks. On the other hand, buying activities for medium- and long-term holding purposes can be considered when stock prices show signs of re-accumulation or recovery in support zones.
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