Week 13_VN-Index and market liquidity declined for the second consecutive week

GLOBAL STOCK MARKETS
Markets turn cautious ahead of new tariff announcements
Global equity markets showed weaker performance ahead of the upcoming comprehensive tariff announcement. In the U.S., equities experienced two consecutive corrective sessions following three days of gains, yet the main indices still maintained an average weekly gain of 0.4%. The negative sentiment spread to major European and Asian markets. Elevated risk appetite continues to support gold as a safe-haven asset, with prices holding firm above USD 3,000/oz, marking a four-week consecutive uptrend.
- U.S. stock indices rose by an average of +0.4%, while the EU600 fell -0.7%, the Nikkei 225 declined -2.3%, and the CSI 300 edged up +0.1%.
- The commodity index decreased slightly by -0.1%, but precious metals continued to climb (Gold +1.6%, Silver +3.8%). Energy prices also increased (Crude oil +2.2%, Coal +5.4%), whereas base metals such as aluminum, zinc, and HRC steel dropped by 2-3%. Agricultural products declined sharply (Wheat -6.3%, Sugar -3%).
- The DXY Index gained +0.3%, and U.S. 10-year Treasury yields rose +0.08%.
Trade tensions resurfaced last week as President Trump announced a 25% import tariff on all non-U.S.-produced automobiles and imported copper. Additionally, the U.S. added 50 Chinese entities to its trade restriction list. Regarding the comprehensive tariff package scheduled for April 2, President Trump emphasized that it is not intended as a tit-for-tat retaliation, and some countries may be eligible for exemptions or reduced tariffs. This prospect has prompted several countries to make concessions in hopes of securing more favorable negotiation terms ahead of the official announcement.
Key economic indicators to watch next week include Japan’s industrial production and retail sales, PMI releases from the UK, Japan, China, the EU, and the U.S., the EU's preliminary CPI, U.S. unemployment claims and jobless rate, Australia's interest rate decision and monetary policy minutes, the OPEC meeting, the U.S. counter-tariff announcement, and Vietnam's March macroeconomic data.

VIETNAM STOCK MARKET
VN-Index and market liquidity declined for the second consecutive week
The VN-Index closed the week at 1,317 points, down 0.3%, accompanied by an 11% drop in liquidity compared to the previous week. The market showed signs of weakening towards the end of the week, closing below the 20-day simple moving average (SMA20). Investor sentiment turned cautious ahead of key information to be released mid-next week, leading to a second consecutive weekly decline in trading liquidity.
- VIC group stocks continued to provide strong market support, contributing 7 points to the VN-Index, while banking stocks and FPT exerted downward pressure. The divergence among large-cap stocks and across sectors remained evident during this correction phase.
- Market breadth narrowed, with only 4 out of 18 sectors advancing. The Real Estate sector gained +4.02%, supported by VIC-related stocks and improved liquidity. Meanwhile, the Media, Personal & Household Goods, and Healthcare sectors declined by more than 2%. With overall liquidity contracting, only two declining sectors — Consumer Services and Financial Services — saw an increase in trading value.
- Foreign investors reduced their net selling to USD 82 million, down from USD 153 million the previous week.
In terms of policy developments, the Ministry of Home Affairs has finalized a draft resolution for the National Assembly Standing Committee on the restructuring of administrative units and has submitted it to the Ministry of Justice for appraisal ahead of the National Assembly's session in May. The draft proposes organizing local governments into two administrative tiers, maintaining 11 provinces while merging 52 others. At the commune level, 9,996 out of 10,035 units will be restructured, reducing the number of communes by 70-75% to below 3,000 units. The draft also sets a five-year roadmap to streamline staffing, ensuring that the total number of provincial and communal-level officials after the restructuring will not exceed the pre-restructuring headcount. Consequently, provincial-level staff is expected to be reduced by around 50%, and commune-level staff by around 70% over the next five years.
We maintain a positive medium-term outlook. The upcoming week will feature important international developments that could present trading opportunities. Investors may consider gradually increasing their equity exposure during market consolidations.