Vietnam Insight

Highlights:

• The Federal Reserve's minutes from their November meeting, released on November 26, indicated that officials believe inflation is moderating and the labor market remains strong. This suggests that they could continue to gradually reduce interest rates. However, the minutes didn't provide any clear signals regarding the upcoming December interest rate decision.
• Foreign investors returned to net buying, purchasing approximately VND 1 trillion worth of Vietnamese stocks last week.

Technical view: TThe VN-Index closed the week at 1,250.46 (+22.36 points; +1.82%) with low trading volume. Many sectors experienced a strong recovery, notably technology and insurance, which saw impressive gains of 7.5% and 7%, respectively. Foreign investors returned to net buying during the week, purchasing approximately VND 1 trillion. In terms of trend, the market has maintained a positive momentum since the bottom at 1,200, and the price momentum has significantly improved as the MACD crossed above the signal line.

Investment ideas: Investors should temporarily avoid buying new, highly market-sensitive stocks. Instead, focus on monitoring existing positions and be ready to sell if the stock price reaches the predetermined target. As the market is trading within a range, investors should prioritize one-time investments and early profit-taking, avoiding averaging down multiple times when prices rise.