Vietnam Insight

Highlights:

• The State Bank of Vietnam (SBV) has proposed that credit institutions strive to reduce lending rates by 1-2% per year and aim for system-wide credit growth of 5-6% by the end of the second quarter.
• More banks have raised savings interest rates in June, with many banks deposit rates of over 6% per year.
• According to ACB Bank, the SBV sold USD 350 million on June 24 and USD 600 million on June 25. Since the end of April, the SBV has sold about USD 5.5 billion at around VND 25,450.

Technical view: The VNINDEX had a rather disappointing trading week, falling continuously throughout the week. Closing the week, the VNINDEX closed at 1,245.3 (-36.7 points, -2.86%) with low liquidity. Foreign investors continued to sell an average of VND 1,000 billion per session. The market has officially broken through the 1,250 level and will continue to retest the 1,200 - 1,240 zone corresponding to the EMA 50 and EMA 20 on the weekly chart. Selling pressure is expected to continue as technical indicators have not yet entered the oversold zone.

Investment Ideas: Investors need to wait longer as there is still selling pressure. Stocks that hold above their 50-day EMA and maintain an upward trend will be the focus of money flow when the market returns to an uptrend. Expected stock groups: real estate and insurance are expected to benefit in the coming period.

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