Vietnam Insight

Highlights:

The manufacturing sector improved slightly with the PMI index crossing the 50 mark, reaching 50.3 in January 2024 from 48.9 in December 2023, mainly thanks to the recovery in output and new orders.

In an interview with CBS on February 4, Powell commented that the US economy is currently strong and the Fed could cut rates this year. However, this is unlikely to happen in March as Wall Street expects. 

Technical view: VNINDEX closed at 1,198.53 (+25.98 points, +2.22%) on the weekly chart. Liquidity remained low. After 2 weeks of correction, the index continued to increase strongly to the sentiment resistance zone of 1200, led by the strong performance of the banking and real estate sectors. On the daily chart, it can be seen that the market increases one session and then rests one session, the STOCH RSI indicator has not yet entered the overbought zone, showing that the momentum of VNINDEX's increase is still there. The reference support and resistance levels are 1160 and 1220.

Investment Ideas: Investors should focus on stocks that have not yet overheated. In terms of sectors, we are particularly interested in the real estate sector, which will follow the banking sector in the next rally as the valuation of this sector is quite attractive, and we expect the real estate market to start warming up in the near future.

• Movement of cash flows and capital flows
• Top stocks worth noting
• Macro data