Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
Author: Midhun Parameswaran
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 posted a modest loss of 0.13% in the three-trading-session week. The market remains in an Uptrend Under Pressure with the distribution day count decreasing to six following one expiration. The index tested resistance at, but remains pressed by, the 21-DMA (~4,884, +0.7%). Next resistance at the 50-DMA (~4,925, +1.6%) and support is at July 28’s low (~4,664, -3.8%). The market had a holiday-shortened week with a light economic calendar and headlines. Utility continued to outperform following expected price hikes and revaluations following business expansions/ shifts to clean energy. The CSI 300 Utilities Sector Index hit a high since December 2015, though came off highs. Food & beverage stocks rebounded but still traded below key moving averages. Developers stopped retreating on easing but still-present worries about Evergrande’s default risk. Healthcare was also strong. Cyclical coal mining, steel, non-ferrous, and chemical stocks led losses, revealing weaknesses after hitting yearly or historic highs. Building material continued weakening. The market is still bottoming, with weak upward momentum evidenced by mixed stock performance, rising volatility, strong sector rotation, and an elevated distribution day count. We recommend investors stay patient ahead of the seven-day National Day holiday. Watch macro policy signals, regulatory moves, industry policy, and geopolitical dynamics.
US Focus
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq broke below their respective 50-DMA (S&P 500: 4,440; Nasdaq: 14,900) Monday before retracing the entirety of the move to close the week. We will now be looking for both indices to settle above this moving average or push further higher in the coming days before shifting the market status back to Confirmed Uptrend. The distribution day count remains low at two and three, respectively, with no expiration next week.
European Focus
On Thursday, the Stoxx 600 closed 1.22% above last Friday’s close. We downgraded Italy to an Uptrend Under Pressure after it breached its 50- DMA. The Netherlands and Ireland are the only indices remaining in a Confirmed Uptrend, while the rest are in an Uptrend Under Pressure.
Global Focus Developed
Australia’s ASX All Ordinaries Index was down 0.7% this week. The index closed slightly below its 50-DMA after breaking below the moving average during the week. On Monday, we shifted the index to an Uptrend Under Pressure from a Confirmed Uptrend. It has five distribution days. One distribution day will expire next week.
Global Focus Emerging
The CSI 300 posted a modest loss of 0.13% in the three-trading-session week. The market remains in an Uptrend Under Pressure with the distribution day count decreasing to six following one expiration. The index tested resistance at, but remains pressed by, the 21-DMA (~4,884, +0.7%). Next resistance at the 50-DMA (~4,925, +1.6%) and support is at July 28’s low (~4,664, -3.8%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 lost 3.14% on slightly lower but above average volume this week. The market remains in an Uptrend Under Pressure with seven distribution days. The index staged a rally Friday after losing support at its 50- (~4,941, +1.7%) and 21-DMA (~4,883, +0.5%) in a four-day losing streak. Next support lies at July 28’s low (~4,664, -4.0%). The domestic economy slowed in August following the negative impact of natural disasters and lockdown measures to control COVID in some areas. Industrial production increased 5.3% y/y (consensus 5.8%, previous 6.4%), fixed asset investment rose 8.9% y/y (consensus 9.0%, previous 10.3%), and retail sales grew 2.5% y/y (consensus 7.4%, previous 8.5%). Expectations of policy support are rising. Healthcare rebounded following centralized procurement results of artificial joints. Chemical stocks outperformed on tight supply amid recovered demand. Electricity companies’ strong performance continued and wind power stocks were firmer on government promotion plans of clean energy in massive rural areas. Cyclical steel and non-ferrous stocks led the loss after recent weeks’ continuous strong moves. Real estate-related building material, home appliance, and banks retreated on worries about the default risk of Evergrande, the country’s second largest developer. Semiconductors and autos also weakened. The market is highly mixed and volatile with strong sector rotation and the distribution day count remains elevated. We recommend investors stay patient and watch macro policy signals, regulatory moves, and geopolitical dynamics.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continued to pullback this week, with the S&P 500 closing just below its 50-DMA (S&P 500: 4,436; Nasdaq: 14,875). Despite the pullback, indices remain just 2% off highs. The next level of support below the 50-DMA on the S&P 500 is ~4,367, while the Nasdaq has good support at ~14,900. The distribution day count stands at three and four, respectively, with one day expiring on each next week.
