Title Week 28_VN-Index gains points amidst doubt and low liquidity_20240708
Report Type Báo cáo tuần
Source BSC
Bussiness HOSTC
Detail Date : 10/07/2024
Total pages : 13
Language : English
File Type : .PDF
FileSize : 1362 Kb
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Short Content

GLOBAL STOCK MARKETS

Tech Stocks Lead, U.S. Stock Indices Hit New Records  
Despite weakening job reports, tech stocks helped global stock markets rise positively. Commodity markets increased while the DXY and bond yields declined.
- U.S. stock markets increased by an average of 1.5%, EU600 +1.5%, Nikkei 225 +3.4%, CSI 300 -0.9%.
- Commodity index +1%; oil prices +2.8%, gold +1.4%, silver +4.9%; copper, iron ore, and zinc prices surged over 6%.
- DXY index -0.8% and 10-year U.S. Treasury yield -0.05% for the week.
At the central bank forum, the FED Chair shared progress on inflation but emphasized the need for sustainable inflation reduction to near 2% before cutting interest rates. The ECB reduced interest rates in their June meeting, but the ECB president also stressed the need to ensure rates are tightly controlled before any further reductions.
Upcoming significant events include the French parliamentary elections, the FED Chair testimony before Congress, and the CPI reports from China and the U.S.
 
VIETNAM STOCK MARKET
The VN-Index Rises Amid Doubts with Low Liquidity.
The VN-Index experienced a 3% increase over 5 sessions, while liquidity dropped by 27%.
- The market quickly rebounded from low price levels as end-of-month margin selling pressure subsided. Some securities companies increased their margin rates for stocks during the week.
- 17/18 sectors saw gains, led by oil and gas, information technology, tourism and entertainment, all up over 6%. The banking sector provided crucial support for a stable recovery despite limited liquidity.
- Foreign investors recorded a net sell of $83 million, a significant decrease from $176 million the previous week.
Bottom-fishing activities in anticipation of second-quarter earnings were quite suitable for the past week. However, the advantage of bottom-fishing has noticeably diminished as the VN-Index returned to the middle of the accumulation channel. Investors are waiting for price movements in the 1,270-1,285 range before considering increasing their investment weight.
UOB Bank's report maintained Vietnam's growth forecast at 6% for 2024. UOB noted a bright growth outlook despite slower growth in the second half of the year due to a high base and existing risks from political conflicts disrupting global trade and energy. Recovering consumption is putting pressure on CPI. UOB believes that the SBV will maintain the refinancing rate at 4.5%.