Vietnam Insight

Highlights:

• The State Bank of Vietnam (SBV) has raised both OMO and repo interest rates to 4.5% and 4%, respectively, effective May 22nd.
• According to market sources, the SBV has sold over USD 3.5 billion of foreign currency to commercial banks since April 22nd
• S&P Global's composite PMI for manufacturing and services in the US rose to 54.4 in May, the highest since April 2022.

Technical view: On the weekly chart, the market experienced its first weekly decline after a streak of four consecutive weekly gains. VNINDEX closed at 1,261 (-11 points, -0.88%). The corresponding support and resistance levels are 1,250 - 1,290. Based on the baseline scenario, the market is expected to trade within the range of 1,250-1,270 next week.

Investment Ideas: Short-term traders should reduce the weight of stocks in their portfolios and look to sell at previously set prices. If VNINDEX breaks below the support level, investors should sell all stocks to protect their assets.

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