Title Week 30_VN-Index gains points amidst doubt and low liquidity_20240725
Report Type Báo cáo tuần
Source BSC
Detail Date : 25/07/2024
Total pages : 0
Language : English
File Type : .PDF
FileSize : 1565 Kb
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Short Content

GLOBAL STOCK MARKETS
Widespreas decline in developed countries stock markets 

Capital continues to flow from technology and large-cap stocks to smaller stocks. Dow Jones rose its points while S&P500 experienced its steepest weekly drop since 4/2024.  
- The U.S. stock market fell an average of -1.7%, EU600 -by 2.7% while Nikkei225 by-2.7%.
- Commodity index fell by -3.3%; notable commodities declines include oil -2.8%, gas-8.8%, metals (Silver -5.1%, Copper -7.7%, Zinc-7.9%).
- The DXY index remained flat at +0.27% and the 10-year U.S. Treasury Bond yield increased by 0.06% over the week.
In the July 18 meeting, ECB continued to maintain its interest rates and hinted at the possibility of a second interest rate reduction in the September meeting. The ECB president warned of slow growth and uncertain increase in 2024. Earlier on July 15, China's Q2 GDP increased by 4.7% yoy, significantly lower than the forecasted 5.1% due to weather impacts and by the time reflecting weakened domestic demand. Negative news from the world's second and third-largest economy still bolstering the outlook for sluggish global growth in 2024. 
PMI service and manufacturing in the U.K., EU và U.S.; interest rate and monetary policy updates from the Bank of Canada, Jobless claims, and the first release of the U.S. GDP are key information to notice in the upcoming week.

VIETNAM STOCK MARKET
 Appearing a volatility session in the accumulation zone

The VN-Index dropped by 1.2% with liquidity increasing by 11% compared to last week. Pessimism emerged due to negative news and unfavorable developments in the global stock market.
- Negative domestic information led to a strong sell-off session on 17/07 despite the support of the index of some Bank stocks.
- Strong profit-taking flows were seen in mid-cap stocks and those that had performed well recently. 
- Foreign investors net sold $43 million, a significant decrease from last week.
The market needs time to evaluate the impact of domestic information. However, we still think that investors can consider buying during shaking sessions to get ahead of the Q2 earnings announcement season.
Following the WB forecast, ADB maintains Vietnam's growth forecast at 6% in 2024 and 6.2% in 2025. Vietnam is one of the prominent countries that will benefit greatly from increased demand for quality semiconductors and electronics. ADB also warned of some risks affecting growth such as the US presidential election, geopolitical escalation in Ukraine and the Middle East, and the risk of a deeper recession in the Chinese real estate market.