Vietnam Insight

Highlights:

• The People's Bank of China has instructed commercial banks to lower mortgage rates by October 31st to support the struggling real estate market.
• Vietnam's manufacturing PMI has declined from 52.4 the previous month to 47.3 in September, indicating the sharpest deterioration in manufacturing health since November last year.

Technical view: The VNINDEX closed the week at 1,270.6 (-20.3 points, -1.57%) with significantly increased liquidity. Thus, the market has lost all the gains of the previous week as the banking group showed signs of weakness. This is also a support zone for the market and is expected to rebound here. If the market tends to rebound, it may create buying opportunities for investors. A positive point this week is that foreign investors continued to be net buyers. The resistance zone is around 1,300 points.

Investment ideas: Investors should prioritize holding strong leading stocks such as the banking sector. With a short-term trading strategy, investors can sell at the current 1,300-point resistance level. And wait for corrections to the 1,27x range and rebound to make new or additional purchases.