Vietnam Insight

Crude oil rises again on cold weather forecasts. Despite a stellar 2024 performance, S&P 500 up 24%, Nasdaq gaining 27%, Dow adding close to 13%, investors showed caution amid profit-taking and rising concerns over future rate hikes. The market is grappling with high valuations, leaving many questioning the next catalyst for a significant move. Year-end pressures intensified as liquidity thinned and traders locked in profits. 

A few large-cap stocks in the banking and real estate sectors weighed on the overall index. VN-Index closed at 1,266.78 points, down 5.24 points (-0.41%) with lower trading volume compared to the 20-day average. Most sectors declined while the banking and blue-chip sectors struggled to maintain. Foreign investors net sold 301 billion dong. In a positive scenario, the market needs stronger buying pressure to return to the resistance level of 1300.

Trading Strategy: Investors are closely monitoring the index's reaction near the resistance levels of 1,280 - 1,300, as this is a zone with high selling pressure. Even if the index manages to surpass this level, a minor correction is entirely possible. Therefore, it is recommended to be cautious with buying at this time and wait for clearer confirmation signals

Buy recommendation: MWG