Vietnam Insight

The PCE index is expected to be released this week. U.S. stock futures were little changed on Tuesday after Wall Street opened December on a soft note amid renewed risk-off sentiment. Markets remain focused on the Fed's policy path, with over 85% of bets pointing to a 25bps cut at next week’s meeting. The Fed has now entered its blackout period. Data releases are also returning to normal following the government shutdown, with attention centered on the delayed September Personal Consumption Expenditures index, the central bank’s preferred inflation gauge, due later this week. Investors are additionally weighing the prospect of a leadership change at the Fed. President Trump said Sunday he has selected a replacement but gave no name, though White House economic adviser Kevin Hassett is widely viewed as the top contender. Most tech stocks fell as concerns over valuations and AI spending lingered. Still, Nvidia rose 1.7% after announcing an expanded tie with Synopsys and a USD 2 billion investment, sending Synopsys shares nearly 5% higher.

Return to the sideways range of 1,600-1,700. VNINDEX closed at 1,701.67 (+10.68 points, +0.63%) with liquidity around the average level of the last 20 sessions. The market had 135 stocks increasing and 178 stocks decreasing. The stocks that contributed the most to the index's increase were VIC, VPL and VHM; the stocks that hindered the market were TCB, CTG and HVN. Foreign investors net sold VND298 billion. VHM and VIC were the most net sold.

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: DBC