Vietinbank Securities has published the Weekly Investment Strategy Report on 6th November, 2023 with the executive summary presented below:
- In the meeting on November 1st, the Fed decided to maintain the standard interest rate in the range of 5.25% to 5.5%. This is the second consecutive meeting where the FOMC has made this decision after 11 interest rate hikes, including 4 times in 2023. The Fed’s move helped cool down the DXY index to around 105.1 points, thereby reducing pressure on the USD/VND exchange rate.
- In addition to the Fed, the ECB also decided to halt interest rate hikes in the November policy meeting. This move had a positive impact on the global stock markets, with all major indices recording gains, ranging from 0.8% to 4%.
- The VN-Index also experienced synchronous movements with global markets, with a 1.52% increase in the past week, closing at 1,077 points. However, this upward trend has not been accompanied by confirmation in terms of liquidity and trading volume, as both indicators decreased by 12.8% and 16.1%, respectively, compared to the previous week. Among industry groups, the basic resources group saw the most significant increase, rising by 9.27%, while the retail group moved against the market’s trend, declining by 8.65%.
- With the DXY index and USD/VND exchange rate starting to cool off at the end of the week, it is expected that there will be more confidence in capital deployment into the stock market. This could help the VN-Index successfully break the 1,100 resistance level during the week of November 6 to November 10, 2023. Investors are recommended to increase their stock-to-cash ratio to 60/40 and focus on certain industry groups that have shown positive Q3 business results, such as the securities sector or those showing signs of recovery in 2024, such as real estate, civil construction, steel, and petroleum.
