Vietnam Insight

Global stocks stable - ECB cuts interest rates. In regular trading on Thursday, The Dow dropped 0.53%, the S&P 500 fell 0.54%, and the Nasdaq Composite tumbled 0.66%. A hotter-than-expected inflation report dampened market sentiment, with the November producer price index rising 0.4%, double the forecasted 0.2%. The ECB delivered 25bps cuts in its three main rates, as largely expected, and omitted previous signals that monetary policy must remain restrictive to fight inflation, stoking expectations of more rate cuts next year.

The market is balanced - Foreign investors are net sellers but are buying into the banking sector. VNINDEX closed at 1,267.35 points, down 1.51 points (-0.12%) with trading volume sideways compared to the 20-day average. In a baseline scenario, the VN-Index needs to form a narrow range with strong volume absorption before challenging the 1,290-1,300 resistance levels.

Trading Strategy: Many stocks have reached their target profit levels, allowing short-term traders to partially sell and lock in profits. Consider completely exiting positions when the VN-Index approaches the 1,300 level.

Buy recommendation: NTP