Vietnam Insight

Highlights:

• Compared to December 2023, Vietnam CPI in August 2024 increased by 1.89%, and compared to the same period last year, it increased by 3.45%. Compared to the previous month, the CPI did not increase.
• Vietnam's manufacturing PMI reached 52.4 points in August, down from 54.7 points in July but still showing strong improvement.
• According to a report by the US Department of Labor, in August 2024, the CPI increased by 0.2% compared to the previous month, in line with forecasts. Compared to the same period, the CPI increased by 2.5%, down 0.4 percentage points from July and lower than the forecast of 2.6%.

Technical view: VNINDEX closed the week at 1,251.71 (-22.25 points, -1.75%) on the weekly chart with very low liquidity. Large-cap groups such as banking and real estate still lack buying momentum. On the daily chart, the market is currently retesting the 1,250 area, corresponding to the closing price of the explosive candlestick on August 16. In the basic scenario, the market will trade in the range of 1,240 - 1,250; if VNINDEX subsequently increases with good liquidity, it will be a signal for increased buying. If the market breaks below 1,240, the market's upward effort will once again be interrupted.

Investment ideas: Investors can consider exploratory investment in banking and real estate stocks. Good buying points will be above the uptrend channel near the support area.