Major central banks are entering the final stage of rate hike cycle and are expected to soon move towards a phase of easing monetary policies. This not only helps to reduce potential risks affecting the long-term movement of the financial markets but also supports short-term uptrends. In July, most of the stock markets went up, in which VnIndex remarkably gained approximately 9.7% compared to the previous month;

VnIndex gained with markedly improved liquidity. The SBV's efforts to reduce interest rates and the "absorption" of the Government’s support policies are considered fundamental factors to help improve cash inflow and support the upward momentum of the market in July;

Q2 business results of listed companies have a clear divergence between sectors;

Cash flow on the market improved in July. The trading value on HOSE reached a 15-month peak;

The market is lacking in new supportive information in August, and at the same time, there are potential risks such as high valuation ground of non-financial sectors, many stocks at risk of being removed from the margin list after the review reports, the USD fluctuations, etc;

We favor Real Estate stocks based on government policies, Banking stocks as many banks have attractive valuations, and Retail stocks based on expectations of a gradual improvement in domestic consumption in Q3.