Title Week 20_Evaluation of Some Content Related to the Process of Upgrading the Vietnamese Stock Market_202405016
Report Type Báo cáo tuần
Source BSC
Bussiness HOSTC
Detail Date : 16/05/2024
Total pages : 21
Language : English
File Type : .PDF
FileSize : 2983 Kb
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Short Content
Vietnam Stock market
VN-Index maintains recovery momentum with a session of point gains at the beginning of the week
VN-Index increased by 1.9% and maintained its third consecutive weekly gain. The upward momentum was widespread, with 71% of stocks and all 18 sectors experiencing price increases. Foreign investors net sold 108 million USD, and liquidity remained at a relatively low average level. Large-cap stocks that had not seen significant gains since the beginning of the year, such as VJC, PLX, MWG, HVN, BCM, and GAS, supported the VN-Index, creating favorable conditions for positive capital flow across sectors including Aviation, Steel, Retail, Chemicals, Information Technology, Textiles, Fishery, Oil & Gas,... The four sectors that gained more than 5% were all of medium and small scale. The VN-Index is currently near a resistance zone, liquidity has not shown signs of improvement and the rapid rise of mid-cap and small-cap stocks indicates that the recovery phase lacks sustainable elements. Therefore, we suggest that investors reduce their exposure to a safe level and monitor short-term developments.
The 7th session of the National Assembly is scheduled to take place from May 20 to June 27. In addition to economic, social, budget issues, the National Assembly will consider 10 draft laws and 3 draft resolutions. One of the draft laws that has attracted public attention is the amended Land Law. The drafting agencies will propose that the National Assembly approve the resolution allowing the law to take effect on July 1, instead of the previously scheduled date of January 1, 2025. Additionally, there is a draft resolution on decentralization for provincial People’s Committees to implement provincial planning. With proactive and positive preparation by the drafting committee, the Land Law and the accompanying guidelines will soon be effective, providing a basis for implementing breakthrough mechanisms and policies closely aligned with local and businesses realities.
 
Global Stock market
The US and European stock markets are positive, while the Asian stock market has diverged
The weekly unemployment data in the United States has reached its highest level since August 2023, leading to increased expectations that the Fed will cut interest rates, thereby positively impacting the US stock market. The DJ has seen a seven-session streak of gains, and the average increase across US stock market indices is 1.6%. A similar upward trend is observed in European stock markets, with the EU600 index rising by 2.2%, while Asian stock markets show divergence: the Nikkei 225 declined by 0.9%, and the SSEC increased by 0.5%. The DXY rose by 0.2%, while the yield on 10-year US Treasury bonds continued to decline by 0.7%. The commodity index increased by 1.9% after a week of significant declines. Notably, oil prices rose by 2%, precious metals (gold) increased by 2.8%, and silver surged by 7.7%, while HRC steel declined by 4%. Many markets recover during the week, and the market continues to expect an early Fed interest rate cut.
China’s trade data for April showed stronger performance than expected. Import volume increased by 8.4% (compared to the forecast of 4.8%), and exports rose by 1.5%. This is positive signal after a decline in March due to subdued domestic demand and slower global demand. Trade disputes are intensifying, with the US government calling for a threefold increase in tariffs on Chinese steel. Additionally, presidential candidate Donald Trump has stated that he would raise tariffs on Chinese goods by an additional 60% if elected. Trump has also proposed a 10% tariff on exports from other countries. These escalating trade tensions are becoming a focal point in the race for the White House in November, adding to the uncertainty in global trade.
 
NOTABLE EVENTS FOR THE UPCOMING WEEK
• Futures contract expires on May 16.
• May 13: Japanese M2 money supply; FDI, new loans, and M2 in China; FOMC members' speeches. May 14: UK unemployment rate; European Finance Ministers meeting; US PPI; FED Chairman speech. May 15: Industrial production index, first-quarter GDP release for the EU; Retail sales, crude oil reserves, and US CPI. May 16: Japanese GDP; US unemployment rate, industrial production index, building permits. May 17: Production index, retail sales, and unemployment rate in China; EU CPI.