Vietnam Insight

The excitement in the U.S. stock market cools down. On Friday, the Dow dipped 0.2%, marking its seventh consecutive losing session. The S&P 500 closed flat, while the Nasdaq Composite rose by 0.12%. After a broad rally following President-elect Donald Trump’s win in November, the stock market has shifted in recent days, with gains concentrated in the tech sector. The central bank is widely expected to cut interest rates by 25 basis points on Wednesday, but market attention will be on the updated policy statement and Fed Chair Jerome Powell’s forward guidance. Investors will also review preliminary purchasing managers’ index data set for release later today.

Capital flows decline across most sectors. VNINDEX closed at 1,262.57 points, down 4.78 points (-0.38%) with lower liquidity compared to the 20-day average. Foreign investors net sell 29 billion dong. 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: MWG