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
China A Shares
The CSI 300 gained 1.31% on higher but below average volume on Friday, the only trading session in this holiday-shortened week. The market remained in an Uptrend Under Pressure with six distribution days. The index retook its converging 21- and 50-DMA (~4,900; -0.6%). Next resistance lies at the 100-DMA (~5,038; +2.1%) and support lies at the low of July 28 (~4,664; -5.7%). Market sentiment was generally positive as high-level talks between China and the U.S. eased tensions, while the private gauge Caixin Services PMI rose to 53.4 in September from the previous 46.7. Previously outperforming cyclical and green energy stocks led the loss, while agricultural and food & beverage stocks continued to go up. Tourism and transportation companies rebounded on eased COVID conditions and positive progress in Merck’s COVID pill. Oil & gas stocks were also strong on surging energy prices. We would like to see the index hold its 50-DMA and trading volume get higher before turning more positive. Sector rotation remained strong amid the volatile market. Investors are advised to adopt a selective and patient approach and watch earnings for more clues.
US Focus
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gapped lower to support on Monday, before rallying back towards 50-DMA resistance to close the week. Both will now enter their sixth week of consolidation with no real trend yet to develop. Support remains ~4,200 and ~14,200, respectively. The distribution day count stands at six and seven, respectively, with one day set to expire on the S&P 500 and two on the Nasdaq next week.
European Focus
On Thursday, the Stoxx 600 ended 1.29% above last Friday’s close. Of the 17 indices we cover, one is in a Confirmed Uptrend and 16 are in an Uptrend Under Pressure. This week, we upgraded Norway and Portugal to a Confirmed Uptrend after they reclaimed their rally high. We downgraded Germany to a Downtrend after the index breached its 200-DMA.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.8% this week. The index is in an Uptrend Under Pressure with six distribution days. Two distribution days will expire next week. The index has regained its 21- and 100-DMA. It faces resistance at its 50-DMA (+1%).
Global Focus Emerging
The CSI 300 gained 1.31% on higher but below average volume on Friday, the only trading session in this holiday-shortened week. The market remained in an Uptrend Under Pressure with six distribution days. The index retook its converging 21- and 50-DMA (~4,900; -0.6%). Next resistance lies at the 100-DMA (~5,038; +2.1%) and support lies at the low of July 28 (~4,664; -5.7%).
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.
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.
