Vietnam Insight

Highlights:

• Starting from April 19, the State Bank of Vietnam has begun selling foreign currency to intervene in the market in the form of spot transactions on weekdays
• US Q1 GDP growth came in at 1.6%, much lower than the forecast of 2.4%. PCEprice index rose 3.4% YoY, accelerating from 1.8% in the previous quarter.
• The State Securities Commission of Vietnam (SSC) said that the KRX system has not been approved yet because there is no report from the Ministry of Finance, the Vietnam Stock Exchange (VNX), and no comments from the beneficiaries (HNX, VSDC).

Technical view: On the weekly chart, after a 30-point recovery session, the market narrowed its decline to 70 points after 2 weeks. In terms of indices, the VNINDEX also improved thanks to strong gains by large-cap stocks, but liquidity remained weak due to cautious sentiment. Notably, the VNINDEX has bounced back at the EMA 200 zone and maintained its long-term upward trend. In the base case scenario, the market may create another bottom before returning to the upward trend.

Investment Ideas: Investors can participate with a small proportion in strong stocks that have broken out above the 50 EMA after sufficient accumulation. Avoid chasing rallies during strong uptrend sessions as geopolitical and macroeconomic risks remain.

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