Vietnam Insight

Highlights:

• December 18: After a two-day meeting, the Fed decided to cut interest rates by 0.25%, bringing the rate range to 4.25–4.50%. Additionally, it is expected to implement only two rate cuts next year, aiming to bring the benchmark rate to 3.75–4.0% by the end of 2025.
• Closing session on December 18: The Dow Jones index recorded its biggest drop in over four months, plunging 1,123.03 points (equivalent to 2.6%) to 42,326.87 points.
• December 20, 2024: The USD continued its upward momentum above 108. The central exchange rate of the Vietnamese dong against the USD increased by 26 VND, reaching 24,304 VND.

Technical view: The VN-Index closed the week at 1,257.5 (-5.07 points; -0.4%) with liquidity continuing to decline on the weekly chart. Sectors that performed well included media, tourism, and entertainment. The market currently lacks a strong leading sector, and capital flow is primarily directed toward small-cap stocks. Foreign investors continued to sell net approximately 1.4 trillion VND this week. The index has nearly erased the strong gains seen on December 5. The main trend of the index remains fluctuating within the 1,200–1,300 range.

Investment ideas: A short-term trading strategy would be more appropriate during this period. Many stocks have reached their target profit-taking levels, and short-term investors can consider partially selling and fully taking profits when the VN-Index approaches the 1,300 range. Investors can increase their holdings but should not exceed 50% of their current stock holdings.