[Market News 22/09/2023] IMPACT FROM THE SBV’S 10,000 BILLION VND T-BILL ISSUANCE SIGNAL CAUSES INDEX TO DECLINE

– The SBV’s issuance of 10,000 billion VND in 3-month treasury bills is a sign that the 25,000 VND price range seems to be where the SBV is ready to intervene to support the exchange rate. This sends a signal that the loose monetary policy could be reversed if the exchange rate continues to rise.

As we have shared many times, if the SBV accepts a higher devaluation of VND without reversing the loose monetary policy, the stock market will be less negatively affected in the short term, but the opposite could push the stock market to adjust in the short term because we are currently at a sensitive valuation level.

– The securities and real estate sectors are two industries currently valued very high compared to historical levels, with vague expectations of profits. In the event of a price correction, these two sectors could create a negative effect on the market if the rate of price decline is faster than anticipated.

– Index forecast for September 22, 2023: Statistics show the index is adjusting downwards.

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SOURCE: AAS RESEARCH