Vietnam Insight

The PPI index rose less than expected. In regular trading on Tuesday, the Dow and S&P 500 gained 0.52% and 0.11%, respectively, while the Nasdaq Composite fell 0.23%. These moves followed a lighter-than-expected producer inflation report for December, which weighed on the dollar and Treasury yields, providing some relief for equities. The PPI, measuring wholesale inflation, increased just 0.2% in December, below economists' 0.4% estimate. Investors now anticipate Wednesday’s consumer price index (CPI) report to assess the Federal Reserve's progress toward its 2% inflation target, which could impact interest rate policies. 

Low spread with light volume. VNINDEX closed at 1,235.65 (+5.17 points, +0.42%) with liquidity around the 20-session average. Foreign investors net sold 72 billion VND. Compared to the recovery session of last week, the market this time recovered with a wider spread and better liquidity and successfully defended the support zone 3 times.

Trading Strategy: The market is showing positive signs as it approaches the 1,200-1,220 point level. For short-term trading, investors can consider disbursing around this area and gradually taking profits when approaching 1,300 points. With a holding investment strategy, investors will only disburse strongly when the VN-Index breaks out and successfully defends the 1,300 point level.