Vietnam Insight

Highlights:

• The spotlight of the stock market will be on the FTSE Russell’s anticipated announcement on October 7 regarding a possible market upgrade.
• According to government data released on September 4, for the first time since 2021, the number of unemployed Americans has exceeded the number of job openings. As of September 4, CME FedWatch showed traders pricing in a 95.6% probability of a Fed rate cut, up from 91.7% earlier the same day.

Technical View: The VN-Index closed the week at 1,666.97 points (-15.24 points, -0.91%) after briefly surpassing the 1,700 threshold. Liquidity was only half of the 20-session average, partly due to two holiday sessions earlier in the week. Foreign investors continued to record net outflows of nearly VND 5 trillion during the week. The current pullback is relatively healthy, given the index had posted four consecutive weeks of gains prior.

Investment Idea: Prioritize a holding strategy and be prepared to sell once targets are reached. For short-term traders, if the market corrects to around 1,640 points and rebounds, a small allocation could be considered. Should the index retreat to the 1,540 zone, it would offer a clearer buying opportunity for mid-term positions. Investors are also advised to maintain a balanced allocation between equities and cash in their portfolios.