Vietnam Insight

A relatively stable week for global stock markets.US stock futures advanced on Monday ahead of a shortened holiday week, after the major indexes sharply gained in the previous session, as technology stocks outperformed, offsetting tumbling consumer stocks. In Friday’s regular trading, the S&P 500 rose 0.88%, the Nasdaq Composite gained 1.31%, and the Dow climbed 0.38%, with megacaps extending gains from Thursday amid re-ignited optimism around AI-related shares. The market is now waiting to see if tech stocks can maintain their momentum heading into the end of the year, and there is speculation about a potential "Santa Claus rally". Investors are also eagerly anticipating the release of second estimates for Q3 GDP growth, corporate profits, and industrial production after last week's data suggested the Fed may cut interest rates further in the coming year.

A last-minute rally. The VN-Index closed the week at 1,704 points (+57.4 points; +3.49% w/w) on low liquidity. Market gains were broad-based across sectors, with notable strength in oil & gas, financials and real estate. The index has continued to trade within the 1,600–1,700 range since August and faces strong selling pressure near 1,800. Foreign investors remain slight net sellers. On the daily chart, the primary trend remains range-bound, as moving averages are converging and RSI hovers around a neutral level of ~50.

Trading Strategy: Investors are watching stocks that have held their value well during the correction of the VIC group. If the market shows signs of rebounding near the 1,600 level, it could present an opportunity to initiate new purchases; however, caution is still advised as liquidity and market sentiment remain weak.