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Title Circular No. 03/2025/TT-NHNN and its impact on Vietnam’s Stock market upgrade
Report Type Báo cáo tuần
Source BSC
Bussiness HOSTC
Detail Date : 26/05/2025
Total pages : 0
Language : English
File Type : .PDF
FileSize : 2305 Kb
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Short Content

GLOBAL STOCK MARKET
U.S. Bond Yields Rise, Pressuring Equities and DXY
Rising concerns over the upcoming federal budget bill have pushed U.S. Treasury yields higher, leading to a broad decline in both equities and the U.S. dollar index (DXY). The House of Representatives passed a bill combining tax cuts and increased defense spending, potentially adding trillions of dollars to the national debt. The bill is now pending Senate approval, expected before June 6. Credit rating agencies have reacted by downgrading the U.S. outlook, fueling further bond market volatility.
- U.S. equity indices fell by an average of -1.7% over the five sessions ending May 22. In contrast, the EU STOXX 600 gained 0.2%, Nikkei 225 declined by 1.5%, and CSI 300 edged down by 0.2%.
- The commodity index rose 0.2%, with diverging trends across sectors: energy declined (crude oil -1.3%), agriculture plunged (coffee -4.5%, potatoes -30.4%), while precious metals rebounded (gold +3.8%, silver +2.6%).
- The DXY dropped 1.4%, as 10Y U.S. Treasury yields rose 2.2% to 4.52% and 30Y yields increased 2.2% to 5.03%.
The People's Bank of China (PBOC) reduced its 1-year and 5-year loan prime rates from 3.1% to 3.0% and 3.6% to 3.5%, respectively—its first rate cut since October 2024. This move comes amid a stronger yuan and easing trade tensions with the U.S., and forms part of a broader stimulus package introduced in early May. This includes rate cuts, lower reserve requirements, and fiscal easing. Despite these measures, China continues to face persistent deflation risks, warranting further policy support to bolster economic recovery.
Key Data and Events to Watch This Week: RBNZ interest rate decision and monetary policy minutes. OPEC meeting. CPI readings from Australia, Japan, and the EU. China’s PMI data. U.S. consumer confidence, durable goods orders, FOMC minutes, jobless claims, and revised GDP data.

 

VIETNAM STOCK MARKET
VN-Index Holds Gains, Supported by VIC Stocks
The VN-Index advanced 1.0% during the week with liquidity down 2% from the previous week. Large-cap VIC group stocks were key in sustaining the index, offsetting broad-based profit-taking pressures.
- Replacing banks as the market driver, VIC group stocks contributed 22 out of 13 net index points, with VIC and VHM providing the bulk of support while bank stocks showed mixed performance.
- Unlike the past two weeks of broad-based gains, only 7 out of 18 sectors recorded weekly advances. Real Estate and Industrial Goods & Services rose 10.65% and 4.50%, respectively, while Media and Information Technology sectors declined over 3%.
- Foreign investors turned net sellers, offloading USD 22 million, reversing from a USD 107 million net buy the week before.
On May 22, the Prime Minister issued Directive No. 69 to implement Resolution No. 66, reinforcing the commitment to cut 30% of administrative procedures (AP) and business conditions by 2025. The directive mandates: 100% digitalization of APs related to businesses, with cross-provincial accessibility; Data synchronization with the National Database of Administrative Procedures by June 13; Decentralization for 307 APs under Decision No. 1015 by June 30. These measures aim to enhance regulatory transparency and streamline business operations in 2025.
The market remains near short-term highs, driven by large-cap stocks, while profit-taking pressure has become more widespread. Given the lack of a clear breakout above recent highs, investors are advised to take partial profits and stay flexible in the short term.