Vietnam Insight

Highlights:

• The Swiss National Bank (SNB) unexpectedly decided to cut interest rates. The SNB's action could lead to further monetary policy easing from other central banks.
• On March 20, the Fed kept the benchmark interest rate at a 22-year high, while forecasting three rate cuts this year.
• All four of Vietnam's BIG 4 banks that received the most deposits in the system have reduced deposit interest rates to below 5%.

Assessment: Positive news about interest rates last week likely supported the VNINDEX's rally. Notably, the SNB's surprise rate cut is seen as the first rate cut by a major economy, implying that the fight against inflation is nearing an end and other central banks may also start cutting rates. In Vietnam, the SBV has been continuously withdrawing money through T-bills to stabilize the exchange rate, which has also somewhat affected market sentiment. Although the impact is not yet significant, investors should also be aware of this risk.

Technical view: On the weekly chart, the VNINDEX formed a long-tailed candle and closed at 1,281.8 (+18 points, +1.43%) with good liquidity improvement. During the week, the market touched the 1,220 area near the EMA 50 and then immediately rebounded to 1,240 - the EMA 50 area in the session, after which the market continued to rise led by the banking group. Support and resistance are 1,250 and 1,300 respectively.

Investment Ideas: Investors should wait for the market to bounce back from the near EMA20/EMA50 base to have a safe position when disbursing. The sectors/stocks that benefit from the recovery of the real estate sector will be the focus of cash flow in the near future.

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• Top stocks worth noting
• Macro data