Vietnam Insight

Waiting for key indicators. US stock futures ticked higher on Monday as investors awaited two key inflation reports this week that could steer the near-term path for interest rates after last week’s disappointing jobs data. The producer price index is due Wednesday, followed by the consumer price index on Thursday. On Friday, the major averages opened sharply higher to fresh record levels before turning negative as weaker-than-expected August jobs data raised concerns about a slowing economy. The Dow fell 0.48% on Friday, while the Dow S&P 500 and Nasdaq Composite lost 0.32% and 0.03%, respectively. Markets have nearly fully priced in a 25 basis point rate from the Federal Reserve later this month, with some positioning for a larger half-point move depending on this week’s inflation outcomes.

The uptrend continues. The VN-Index closed at 1,666.97, down 29.32 points or 1.73%. Liquidity was in line with the 20-day average. There were 100 gaining stocks and 230 declining stocks. The stocks contributing most to the market's gains were SJS, GVR, and VJC, while VCB, VPB, and BID contributed most to the decline. Foreign investors were net sellers, with strong selling pressure exceeding 1,350 billion VND, primarily in VPB and VHM.

Trading Strategy: Prioritize a holding strategy and be ready to sell once targets are met. For short-term traders, if the market corrects to around 1,640 points and rebounds, a small allocation can be considered. If the market returns to the 1,540-point area, there will be a clearer buying opportunity for medium-term positions. In addition, investors should maintain a balanced ratio of stocks and cash in their portfolios.