Vietnam Insight

US inflation lower than expected. During Wednesday’s regular session, the S&P 500 and Nasdaq Composite gained 0.49% and 1.22%, respectively, snapping a two-day losing streak. However, the Dow edged down 0.2%, marking its third consecutive decline. The rally followed a softer-than-expected February inflation report, which helped ease concerns about the economy and the impact of tariffs on prices. The annual inflation rate in the US eased to 2.8% in February 2025 from 3% in January, below forecasts of 2.9%. Meanwhile, Trump’s steel and aluminum tariffs took effect, prompting Canada to retaliate with 25% duties on over $20 billion worth of US goods. 

Tight spread at the top. VNINDEX closed at 1,334.41 (+1.87 points, +0.14%) with liquidity remaining high. The market had 189 green codes and 272 red codes. The group of stocks contributing the most to the market's growth was VCB, VHM, VIC while BID GVR and FPT contributed to the market's decline. The industry group with growth momentum focused on some large-cap stocks, with little spread. Foreign investors net sold VND 836.45 billion.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend, heading towards 1,350 points. Investors can increase their positions during dips with average volume and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors can reduce their portfolio weight to manage risk.

Buy Recommendation: KBC