Vietnam Insight

Highlights:

• Vietnam and NVIDIA Partnership: The cooperation between Vietnam and NVIDIA not only promotes the robust development of artificial intelligence (AI) technology in Vietnam according to international standards but also creates momentum for the innovation ecosystem and high-tech industry in Southeast Asia.
• Fed Rate Cut Expectation: Following the expected CPI report, the probability of the Fed cutting interest rates by 25 basis points at the December 18 meeting has increased to over 94%, according to the CME FedWatch tool.

Technical view: The VN-Index closed the week at 1,262 (-4.78 points; -0.38%) with low trading volume on the weekly chart. The sectors that performed well were media, insurance, and healthcare, which are small-cap sectors, so they were not strong enough to pull the market. Foreign investors continued to net sell about 1 trillion VND this week. The main trend of the index is still a fluctuation in the range of 1,200 - 1,300. It is highly likely that the market will retest the 1,250 level.

Investment ideas: A short-term trading strategy will be more suitable during this period. Many stocks have reached their target profit-taking level, so short-term traders can sell a portion and take profit on the remainder when the VN-Index reaches the 1,300 level. Investors can increase their holdings but should not exceed 50% of their current holdings.