Vietnam Insight

Delaying the release of key economic data. US stock futures were little changed on Wednesday after major indexes slid in the previous session amid renewed concerns over the durability of the artificial intelligence rally and the prolonged government shutdown. On Tuesday, the S&P 500 and Nasdaq Composite fell 0.38% and 0.67%, respectively, pulling back from record highs, while the Dow lost 0.2%. Oracle dropped 2.5% after reporting weaker-than-expected cloud margins and losses on some Nvidia chip rental deals. Growing fears about a reversal in the AI rally reminiscent of the late-1990s dot-com bubble also pressured stocks. Meanwhile, the ongoing government shutdown continues to weigh on sentiment, delaying key economic data and increasing pressure on policymakers to reach a deal.

Testing the peak. VNINDEX closed at 1,685.30 (-10.20 points, -0.60%) with liquidity returning below the 20-session average. The market had 77 stocks increasing and 247 stocks decreasing. The group of stocks contributing the most to the market's increase was VPL LPB VHM, while those contributing to the market's decrease were CTG, MBB, VPB. Foreign investors continued to net sell more than VND 1,342 billion.

Trading Strategy: Prioritize the strategy of holding and being ready to sell when the target is reached. In the positive case, VN-Index successfully tests and maintains 1,700, investors can increase the proportion for the upcoming uptrend. In case of not successfully breaking through 1,700, the market returns to the 1,500-1,540 point range, there will be a clearer buying opportunity for the medium-term position, investors can disburse more confidently, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation level compared to the general market.

Buy Recommendation: VCB