Vietnam Insight

The U.S. preferred inflation gauge, the PCE index, rose below expectations. US stocks recovered from early losses to trade firmly higher on Friday as markets reconsidered the impact that fewer rate hikes by the Federal Reserve next year may have on corporate returns. All three major indices recovered from 1% losses to hover 1.5% higher, tracking the sharp rebound for Treasury securities. The rebound was further supported by bets that the Fed may still make policy less restrictive after a softer-than-expected increase in the core PCE price index during November, the Fed’s preferred gauge of underlying inflation.

Supply and demand are balanced, and cash flows remain divergent. VNINDEX closed at 1,257.5 points (+2.8 points, +0.23%) with lower-than-average trading volume over the past 20 sessions. All sectors experienced adjustments today, except for the oil and gas sector and the import-export sector which managed to maintain a green color. Foreign investors were net buy of VND 30 billion. In the base case, VN-Index needs to form a narrow-range consolidation zone with low volume before challenging the strong resistance at 1290-1300.

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.