HIGHLIGHTS
International News:
U.S. stock markets surged on Tuesday, as investors awaited the results of the presidential election. The Nasdaq Composite rose by 1.43% to 18,439.2 points, the S&P 500 increased by 1.23% to 5,782.8 points, and the Dow Jones gained 1.02% to close at 42,221.9 points.
National news:
Interbank VND rates rose sharply by 1.38 – 2.23 percentage points for terms under one month, with the overnight rate at 6.20%, the one-week rate at 6.18%, the two-week rate at 5.95%, and the one-month rate at 5.75%. The market remained active as the USD/VND exchange rate continued to rise, approaching its upper limit and increasing by 4.3% since the beginning of 2024. This was driven by international pressure, higher seasonal foreign currency demand, and purchases by the State Treasury. To stabilize the market, the State Bank of Vietnam (SBV) offered VND 30 trillion via OMO at an interest rate of 4.0%, with VND 29.99997 trillion successfully taken up. Additionally, VND 300 billion in 28-day treasury bills were sold at an interest rate of 3.90%. In total, the SBV injected a net amount of VND 23.59997 trillion into the market, raising total OMO outflows to VND 53.99988 trillion and outstanding treasury bills to VND 82.5 trillion.
TRADING STRATEGY
The stock market traded in a narrow range and closed slightly higher at 1,245 points, with trading volume dropping to its lowest level since April 2023. Selling pressure eased as funds focused on leading stocks in the real estate and banking sectors. The VN-Index is expected to recover and move towards the 1,250-point level today.
Market movements remain sideways with low liquidity within the 1,240-1,250 support range, as cautious sentiment prevails ahead of global political updates and the Federal Reserve’s interest rate decisions. Capital flows have shifted between leading stocks in key sectors and certain stocks with positive individual developments. This period calls for investors to be patient, focusing on accumulating stocks with solid fundamentals and attractive valuations, rather than buying too much or reacting to short-term index fluctuations.
Investor can see the full Newsletter below:
