Vietnam Insight

Highlights:

• May 2024 saw the largest increase in adjusted foreign direct investment (FDI) capital in the first five months of 2024, with more than $800 million.
• Industrial production in May continued its upward trend, with the IIP for May increasing by 3.9% over the previous month and by 8.9% year-on-year.
• According to data from the CME Group's FedWatch Tool, the probability of the Fed initiating a rate cut in September has fallen to just under 50% in the past week, from around 70% the previous week.

Technical view: On the weekly chart, the market closed at 1,261 (-0.21 points, -0.02%) with moderate trading volume. Over the past week, the VNINDEX has been trading in a range bound pattern between 1,250 and 1,280, with many large-cap stocks showing divergent movements. In the less optimistic scenario, if the market breaks below the 1,250 level, there is a high probability that the VNINDEX will violate the medium-term uptrend and return to the 1,200 - 1,230 range.

Investment Ideas: Short-term trading opportunities are more difficult when the market is sideways in a narrow range, however, dips back to support zones are opportunities for medium- to long-term investors to accumulate more good stocks.

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