Vietnam Insight

Highlights:

• Donald Trump officially re-elected as president with 312 electoral votes.
• On November 8, the State Bank announced the daily central exchange rate at 24,278 VND/USD, down by 5 VND from the previous weekend. The DXY Index unexpectedly surged above 105 points, marking the highest level in nearly four months.
• On November 7, the Fed decided to continue easing monetary policy, reducing the US benchmark interest rate to 4.5-4.75%, a 25 basis point (0.25%) cut.

Technical view: The VN-Index closed the week at 1,252.56 (-2.33 points; -0.19%) with low liquidity and divergence among many large-cap stocks. Foreign investors continued to sell throughout the week. The market is currently trading in a range of 1,240 – 1,300 and lacks leadership and consensus among large-cap stocks.

Investment ideas: Investors should exercise caution during this period as strong divergence is likely to continue in the near term. Priority should be given to holding industrial park and export sectors (those with high export ratios to the US) that benefit from the US election outcome. For new entry points, investors should wait for the market to correct and bounce back at the 1,240 support level.