Vietnam Insight

Awaiting the FOMC meeting. US stock futures inched higher on Monday ahead of a shortened holiday week, after the major indexes edged up on Friday. The Dow rose 0.1% while the S&P 500 and the Nasdaq 100 were almost unchanged, highlighting the last three days of 2025 and the first trading day of 2026. The market will be closed for New Year's Day. Tuesday’s FOMC meeting minutes will be a key catalyst this week, offering detailed insights into the Fed’s December policy decisions and the internal debates that shaped its more hawkish outlook for 2026, while investors also look for seasonal factors, including the Santa Rally, to lift sentiment. In regular trading on Friday, the Dow and the S&P 500 gained 0.1%, closing at record highs as strength in technology and energy offset caution tied to robust growth data. Also, the Nasdaq Composite rose 0.1%, supported by a 1% gain in Nvidia after it announced a licensing deal with AI startup Groq, reviving demand for AI-related names and supporting the broader megacap complex.

Bottom-fishing demand emerges. The VNINDEX closed at 1,729.80 (-13.05 points, -0.75%) with a sharp increase in trading volume, exceeding the average of the last 20 sessions. The market saw 218 declining stocks and 100 rising stocks. Stocks hindering the market's upward movement included VIC, VHM, and VPL; the stocks contributing most to the index's rise were HPG, GAS, and STB. Foreign investors net sold VND 1,155 billion, primarily focusing on VIC (VND 533 billion) and VHM (VND 359 billion).

Trading Strategy: Short-term investors may consider participating in stocks showing strong upward signals above the 20-day moving average (MA20), such as the banking, oil & gas, and utilities sectors. Medium-term investors can view pullbacks toward the 1,680 level as favorable opportunities for disbursement.