Vietnam Insight

Highlights:

• On November 15th, The SBV raised the central exchange rate by 8 dong to a new high of 24,298 VND/USD, marking the fourth consecutive increase this week.
• On November 15th, the US Dollar Index reached 106.82, its highest level in a year.
• On November, 14th, Fed Chair Powell indicated that the strong US economy may delay interest rate cuts.

Technical view: The VN-Index closed the week at 1,218.57, down 2.71% with increased trading volume, indicating strong selling pressure. Foreign investors were net sellers of approximately 4 trillion dong during the week. Sectors such as retail, oil and gas, and banking experienced significant selling. The index has broken below its 200-day moving average, suggesting a potential retest of the 1,200 level.

Investment ideas: Given the significant market volatility, short-term traders should avoid holding highly market-sensitive stocks like those in the banking and finance sectors. Prioritize sectors with high export volumes to the US, as well as those benefiting from public investment and industrial zones. However, given the overall market risk, it is advisable to maintain a low equity allocation.