HIGHLIGHTED NEWS
The State Bank is drafting a Circular to replace Circular No. 19/2013/TT-NHNN and Circular No. 33/2016/TT-NHNN (Circular 19) on the purchase and handling of bad debts of the Vietnam Asset Management Company (VAMC). One of the important amendments is to abolish the requirement for the State Bank to approve the Debt Purchase Plan at market value and propose a mechanism for handling "exceptional" bad debts. VAMC will proactively decide on debt purchases based on its financial capacity, actual situation and business plan, in line with the policy of cutting administrative procedures and increasing the autonomy of state-owned enterprises.
According to the draft Law on Deposit Insurance (amended) being submitted to the National Assembly, the deposit insurance organization is allowed to provide special loans to organizations participating in deposit insurance, and receive special loans with 0% interest from the State Bank.
TRADING STRATEGY
The stock market continued to recover, reaching 1,687 points with a sharp decrease in liquidity. Diversification increased. Cash flow tends to seek stocks leading the real estate, industrial services, retail, and oil and gas sectors. On the contrary, selling pressure increased slightly in stocks of banking, financial services, basic resources, and technology sectors. VN-Index today is likely to fluctuate around the 1,675-1,700 point area.
The market recovered for the third consecutive session with average liquidity at a low level compared to previous trading weeks. The general sentiment is quite cautious as cash flow is constantly circulating and stocks with high mass are still under pressure to decrease points. Foreign investors continue to net sell at high intensity. VN-Index is currently approaching the psychological zone around the 1,700 point mark and it is very likely that the market will continue to differentiate with a tug-of-war to test the balance of supply and demand. Investors should pay attention to reviewing and restructuring short-term portfolios according to price fluctuations of individual stocks. On the other hand, buying for medium- and long-term holding purposes can be considered when stock prices show signs of re-accumulation or recovery at support zones.
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