Vietnam Insight

Highlights:

• US stock market gains on Tuesday (September 24), setting new records
• The People's Bank of China (PBoC) has decided to cut the reserve requirement ratio by an additional 0.5%, allowing Chinese banks to have an extra approximately 1,000 billion yuan (nearly $142 billion) for new loans.
• US Q2 GDP: The US economy maintained a growth rate of 3% in the second quarter, in line with forecasts.

Technical view: VNINDEX closed the week at 1,290.9 (+18.88 points, +1.48%) with significantly improved liquidity. Thus, the market once again has the opportunity to surpass the resistance of 1,300. The main trend of the market is an uptrend in both the short and medium term, however, there is adjustment pressure as the fourth and fifth sessions showed selling pressure in the afternoon. The positive and different point in this increase is that foreign investors have been net buyers in the past week (excluding the net selling of VIB) and the Fed has cut interest rates. We expect the market to have a healthy adjustment of 10-20 points to the 1,275 region before it can sustainably surpass the 1,300 region.

Investment ideas: Investors should prioritize holding leading stocks such as those in the banking sector. For short-term trading strategies, investors can sell at the current resistance level of 1,300 points. And wait for adjustments to the 1,275 region and rebound to make new investments or increase holdings.