Vietnam Insight

Rotation of capital out of U.S. technology stocks. US stock futures were mixed on Friday as investors evaluated a new round of corporate earnings. Dow futures rose 0.1%, while S&P 500 and Nasdaq 100 futures declined 0.1% and 0.2%, respectively. In extended trading, Broadcom fell nearly 5% despite delivering better-than-expected quarterly results and issuing strong guidance. Meanwhile, Lululemon jumped more than 10% after announcing that its CEO will step down at the end of January following a year of weak performance for the athletic apparel company. During Thursday’s regular session, the Dow and S&P 500 advanced 1.34% and 0.21%, respectively, with both indexes closing at fresh record highs, while the Nasdaq Composite dipped 0.25%. The session reflected a rotation out of expensive tech and AI-oriented names and into cyclicals and undervalued sectors after the Federal Reserve’s latest rate cut.

Pullback at the 1,800 resistance zone. The VNINDEX closed at 1,698.90 (-20.08 points, -1.17%) with liquidity continuing to decline and lower than the average of the last 20 sessions. The market saw 104 gainers and 192 losers. The stocks contributing most to the index's rise were SAB, LPB, and BMP; the stocks hindering the market were VIC, VHM, and VPL. Foreign investors net sold nearly 500 billion VND, with VIC alone experiencing net selling of VND 190 billion.

Trading Strategy: The sharp decline in the VIC group dragged the index lower, but several sectors are showing signs of strong price support. Notably, banking, utilities, basic resources, and financial services; investors may continue monitoring these groups to prepare an appropriate deployment strategy.