Vietnam Insight

Global stock markets are stable, market is waiting for the FOMC this week. Last week, the Dow surged 1.96%, the S&P 500 rose 1.68%, and the Nasdaq Composite climbed 1.73%. These gains were fueled by strong US economic data and continued optimism surrounding the election outcome, which helped support equity markets. Trump stated that Bessent’s appointment would help implement his protectionist trade policies. Investors are now focused on the release of the latest FOMC meeting minutes, PCE inflation data, and other key economic indicators this week to guide expectations for future interest rate decisions.

The market recovery lost momentum. The VN-Index closed the week at 1,228.1 points, up 9.53 points or 0.78%, with low liquidity. On Friday, the index saw little change. Stocks contributing to the market's gains included GAS, TCB, and HVN, while VHM and GVR weighed on the market. Most sectors rose, but the gains moderated. Foreign investors net sold approximately 5,000 billion dong over the week.

Trading strategy: Investors who have already deployed capital during the recent weekly recovery of the VN-Index should consider pausing new purchases. This is due to the potential for unforeseen risks that could cause the VN-Index to form a second lower bottom at around 1,170 points in a worst-case scenario. It is recommended to prioritize holding stocks with solid foundations at a low weight.