Vietnam Insight

US stocks rally for 4th straight session. The S&P 500 added 0.8%, the Nasdaq rose 0.9% and the Dow increased 0.8% extending gains for a fourth straight session on Wednesday as the market pushed into the Thanksgiving week, driven by a sharp repricing of Fed policy that now puts the odds of a 25bp December cut above 80%. Reports that the White House has narrowed its search for the next Fed chair to White House National Economic Council Director Kevin Hassett, a choice investors view as aligned with President Trump’s push for lower rates, reinforced expectations of easier policy and helped fuel another rotation into large cap tech. 

Return to the sideways range of 1,600-1,700. VNINDEX closed at 1,680.36 (+20 points, +1.20%) with liquidity around the average of the last 20 sessions. The market had 79 gainers and 243 losers. The stocks that contributed the most to the index's increase were VPL, VIC and VPB; the stocks that hindered the market were VJC, VHM and FPT. Foreign investors net bought VND622 billion. SHB and VPB were the most net bought.

Trading Strategy: Trading-oriented investors can monitor the market's reaction around the 1,650-1,700 range. If the index does not drop out of the sideway channel during corrective sessions, this could be a good opportunity for this type of investor to re-enter the market. Medium- and long-term investors can begin partially disbursing capital into stocks with strong business results and attractive enough discounts, such as the banking, financial, and construction materials sectors.