Vietinbank Securities has published the Weekly Investment Strategy Report on 20th November, 2023 with the executive summary presented below:
- The CPI data for October in the United States, released by the Department of Labor on November 14, showed a 3.3% increase compared to the same period, slightly below the market expectation of 3.2%. This information contributed to the continued sharp decline in the DXY index, which ended the week at 103.8 points.
- Meanwhile, the Chinese government is considering injecting 1 trillion CNY to rescue the real estate market for the renovation of slums and affordable housing in the country. If implemented, this plan would mark a significant step in the authorities’ efforts to prevent the largest real estate downturn in decades.
- The VN-Index recorded a 0.04% decline in the past week as profit-taking pressure intensified after a successful bottoming out in early November. Meanwhile, capital inflow from external sources continued to flow strongly into the market, boosting liquidity and the average trading value per session, reaching 898 million shares and 18,368 billion VND, respectively. It is noteworthy that selling pressure showed significant signs of increase in the retail and basic resources stock groups, with decreases of 1.73% and 1.33%, respectively.
- With a series of negative news emerging simultaneously over the weekend, such as the investigation into Vinfast by a US law firm for potential securities law violations and the indictment of individuals involved in the wrongdoing at SCB, we anticipate that selling pressure will continue to increase next week. The VN-Index is expected to fluctuate within the range of 1,075 to 1,110 points. Short-term investors are advised to maintain a stock/cash ratio of 40/60 to be prepared for market volatility. Meanwhile, medium to long-term investors are recommended to reassess the stocks in their investment portfolios to evaluate the impact of such negative information.