Vietnam Insight

Market remains stable, awaiting U.S. inflation data. US stock futures were flat on Monday as investors awaited this week’s inflation readings that could influence the interest rate outlook. The consumer price index is due Tuesday, followed by the producer price index on Thursday. The figures come ahead of the Federal Reserve’s Jackson Hole symposium in Wyoming on Aug. 21-23, which is expected to help set the tone for the September policy meeting. Last week, the Dow gained 1.35%, the S&P 500 climbed 2.43%, and the Nasdaq Composite jumped 3.87%. Those moves came as strong corporate earnings supported market momentum, while investors largely shrugged off the implementation of President Donald Trump’s sweeping retaliatory tariffs. Growing expectations for a Fed rate cut in September, with a possible follow-up in December, also fueled bullish momentum.

Waiting for trend confirmation. The VN-Index closed at 1,584.95, up 3.14 points or 0.2%, with liquidity around the 20-day average. There were 177 gainers and 155 decliners.The main contributors to the market's gains were stocks like VIC, VPB, and GEE, while BID, TCB, and HPG contributed most to the decline. Foreign investors were net sellers of approximately 833 bn VND, with a focus on BID, SSI, and HPG.

Trading Strategy: Investors are prioritizing holding and taking profits on stocks that have surged sharply. There are currently not many suitable buying points for medium-term positions; new entries are only appropriate for short-term holding strategies. During pullback sessions to around the 1,500 level, corresponding to the MA20, investors may consider disbursing capital if prices show sufficient consolidation. In addition, there are still many stock groups that have not risen as strongly as the broader market and are trading around the 200-day MA, which could also be considered as potential opportunities.