HIGHLIGHTED NEWS
The State Bank issued Circular 25/2025/TT-NHNN, which is expected to bring about many major changes, thereby creating a strong push for the process of upgrading the Vietnamese stock market. Specifically, Circular 25 has added regulations allowing foreign investors conducting indirect investment activities in Vietnam to authorize financial institutions to open, close and use payment accounts. The Circular also removes the requirement for consular legalization, expands identification documents beyond passports, and eliminates the obligation for banks to monitor the validity of identification documents or keep customer signatures and seals. According to the new regulations, the process of opening securities accounts for foreign investors is significantly shortened. After being granted an electronic securities transaction code (e-STC) at the Vietnam Securities Depository and Clearing Corporation (VSDC), investors can open a trading account at a securities company and an indirect investment account at a custodian bank. In addition, foreign investors are allowed to use the SWIFT system to open and use payment accounts; open foreign currency accounts electronically; and are not required to verify biometric information when making electronic payment transactions.
TRADING STRATEGY
The stock market fell back to 1,624 points with liquidity slightly increasing compared to the previous session. Selling pressure increased across the board at the end of the session. The least affected groups were mainly stocks with high mass in the finance and industrial services sectors. Meanwhile, individual stocks in the basic resources and real estate sectors played a supporting role in supporting the general index. The VN-index today is likely to fluctuate around the 1,600-1,630 point area.
The market fell with a large amplitude for the second consecutive session after testing the psychological zone of 1,700 points. Selling pressure still revolved around stocks with high mass or stocks that have experienced many consecutive hot increases in the previous period. Foreign investors temporarily stopped net selling. The VN-index is likely to enter an intermediate downward correction phase in the medium- to long-term uptrend. The next support zone of the index is currently around 1,580-1,600 points. Although divergence may continue, overall, investors should consider controlling the proportion of their portfolios, limit bottom-fishing when supply is still overwhelming or sell-off at strong support zones.
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