The market in April did not perform well as expected despite a series of supporting policies from the Government and and macro factors – regulatory interest rates cut, stable exchange rates. We think this development shows that cautious sentiment still prevails given many unpredictable variables ahead such as the prospect of profit growth or the repercussions of steep interest rate hikes from the major central banks over the past year (economic recession, banks collapse).

As the earnings and the AGM season pass, we don't expect a surprise move of the market in May. However, the current easing monetary policy is still a solid foundation for the market, with headroom for a possible rate cut since (1) inflation is low, (2) the exchange rate is expected to remain stable as the Fed is likely to make its final interest rate hike in 2023 and the trade surplus to be maintained, (3) Q1-2023 GDP growth was well below the full-year growth target. However, it will take time for these policies to have a real impact on the economy. Therefore, we expect the market to maintain the primary trend of sideways in May, fluctuating in the 1020-1080 range.

With VN Index’s volatility of 1,4% in April, several stocks in our recommendation list have met our expectation including NLG, QNS, DBD and MWG. Investors, who took profit following the recommendation, could keep watching and wait for any potential correction in May.

Market correction in April created buying zones for KDH, ACB, FPT, MBB, VPB, DRC and VNM. Although we recommended to keep these stocks for Mid – and Long – term horizon, temporarily reducing position for DRC should be considered. DRC is one of the leaders of Auto tires manufactures along with high and stable cash dividend. However, short-term headwinds could tear its earnings in next quarters and we believe that investor will have a better chance to accumulate with better price in upcoming market corrections.