Vietnam Insight

The downward trend continued in US stocks. On Tuesday, the S&P 500 and Nasdaq Composite fell 1.07% and 1.71%, respectively, snapping a two-day winning streak, while the Dow lost 0.62%. Market attention will be on the Fed’s quarterly updates on rate projections, as well as its outlook for economic growth, inflation, and unemployment. US stocks have been under pressure for the past four weeks, weighed down by escalating global trade tensions and growing recession concerns in the US.

Slight correction. VNINDEX closed at 1,330.97 (-5.29 points, -0.40%) with slightly reduced liquidity. The market had 160 green codes and 318 red codes. The group of stocks contributing the most to the market's increase was GAS, LPB, POW while VCB CTG and VPB contributed to the market's decrease. The energy group went against the market with many notable names such as POW, NT2, GEG. Foreign investors net sold 432.81 billion VND.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend to reach 1,350 points. After several consecutive rising sessions, the VN-Index may experience alternating declining sessions in the coming weeks. Investors can increase their positions during these declining sessions with average liquidity and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors may reduce their portfolio weight to manage risk.

Buy Recommendation: NT2