Profit-taking pressures rise amid resistance

HANOI: The stock market’s recovery, which began in late April, extended into May, but profit-taking pressure rose as the market approached a strong resistance level, and there were signs of a resurgent USD exchange rate following the upward trend of the US Dollar Index (DXY).

The Vn-index on the Ho Chi Minh Stock Exchange (HOSE) closed last week at 1,244.7 points, and the Hnx-index on the Hanoi Stock Exchange (HNX) was last traded at 235.68 points.

Both indices posted a weekly gain, with the former up 1.9% while the latter soared nearly 3.3%.

The benchmark Vn-index recorded a strong start last week, surging over 20 points and surpassing the 1,240 level. However, the following sessions saw a slowdown in the upward momentum, with the market trading sideways around the 1,240 to 1,250 range.

Profit-taking pressure emerged as the index approached a strong resistance level and signs of a resurgent USD exchange rate after the DXY index, gauging the greenback’s strength against a basket of six major currencies, moved up.

The USD/VND exchange rate remained volatile during the week. On May 10, the State Bank of Vietnam (SBV) announced the central exchange rate at 24,271 dong per dollar, up 26 dong from the beginning of the week.

At Joint Stock Commercial Bank for Investment and Development of Vietnam, the rates were quoted at 25,184 dong to 25,484 dong, up 27 dong from the start of the week, while Vietcombank’s rates stood at 25,154 dong to 25,484 dong, an increase of 27 dong to 37 dong compared to the beginning of the week.

Experts from ACB Securities Ltd Co anticipate that the exchange rate pressure in Vietnam will be persistent throughout the second quarter of 2024 until the US Federal Reserve officially cuts interest rates. — Viet Nam NEWS/ANN