Week 34_VN-Index resumes its upward trend_20240819

GLOBAL STOCK MARKETS
S&P 500 increased for six consecutive sessions following last week’s volatility
Positive labor, inflation, and consumer data eased concerns about an economic recession, leading to a strong market recovery. The stock market saw positive gains, while other markets experienced slight fluctuations.
- U.S. stock market increased by an average of 4%; EU600 +2.1%; Nikkei 225 +7.8%; CSI 300 +0.5%.
- Commodity index rose by 1.3%, primarily due to gas (+3.2%) and precious metals increasing between 1% and 3%.
- DXY index decreased by 0.3%, and U.S. 10-year Treasury yields fell slightly by 0.05%.
The U.S. PPI for July increased by 0.1%, below the forecast of 0.2%, bringing it down to 2.2% YoY from 2.7% YoY in June, thanks to a significant drop in service costs. The U.S. CPI for July rose by 0.2% MoM and increased by 2.9% YoY, lower than expected. This data continues to support the ongoing decrease in inflation, reinforcing expectations that the Fed will implement a rate cut next month.
Monetary policy minutes from the Reserve Bank of Australia, one- and five-year interest rates from China, FOMC minutes, and PMI data from the UK, EU, and U.S. are key information to watch for in the coming week.

VIETNAM STOCK MARKET
VN-Index is back to an upward trend, in tandem with the recovery of international markets
After a period of indecision mid-week, the VN-Index saw a strong increase, contributing to a weekly gain of 2.3%. Liquidity decreased by 15% compared to the previous week.
- Moving more sluggishly than the recovery of international markets, the VN-Index unexpectedly surged at the end of the week with good breadth and liquidity. This increase reinforces the short-term recovery trend.
- 13 out of 18 sectors posted gains. The Technology and Retail sectors rose by 4-5%, while Basic Materials and Utilities fell by more than 1%.
- Foreign investors shifted to a net buying of $45 million compared to a net selling of $150 million the previous week.
The market rose amid skepticism due to reasonable price levels and positive developments in global stock markets. Investors may consider using fluctuations to accumulate stocks during the short-term resistance testing at 1,260 points.
Following Decree 102 that details certain provisions of the Land Law, the Prime Minister has directed the implementation of three laws on land, housing, and real estate to drive socio-economic development via Dispatch 79. This notice requires ministers, government agencies, and local leaders to issue documents to bring these policies into practice. In reality, these three laws have been effective since August 1 and there are some issues in the implementation process.