Vietnam Insight

Dovish developments from the markets. US stock futures held steady on Friday ahead of the final trading session of November, with all three major averages on track to finish the month lower. The Dow and S&P 500 were down slightly by 0.29% and 0.4%, respectively, month-to-date, while the tech-heavy Nasdaq Composite fell 2.15%. A pullback in technology shares pressured Wall Street through November amid worries about stretched AI valuations and uncertainty over the Federal Reserve’s policy path. However, dip buyers stepped in towards the end of the month as soft US economic data and dovish signals from policymakers boosted expectations for additional Fed rate cuts. Markets are now pricing in about an 87% chance of a 25 basis point cut in December, with three more reductions anticipated next year. The stock market was closed on Thursday for Thanksgiving Day and will shut early at 1 p.m. on Friday.

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: Investors need to be selective in choosing stocks, as the VNINDEX is being heavily influenced by movements in the VIC group. Medium- and long-term investors can start gradually disbursing into sectors with solid earnings and attractive valuations, such as banking, financial services, and construction materials. Short-term investors can focus on stocks showing improving liquidity and prices, such as utilities, industrial parks, and technology.

Buy Recommendation: POW