Vietnam Insight

US stocks pull back after record highs. Minutes from the Fed's December meeting noted that most of the FOMC judged that rate cuts are likely to be appropriate next year if inflation eases over time. Still, policymakers were divided in their assessment of risks between higher inflation and unemployment, with a part of the FOMC displaying greater concern that inflation becoming entrenched may require higher borrowing costs, while others preferred a greater magnitude of rate cuts to curb signs of a softening labor market. The December meeting saw a reduction in the federal funds rate by 25bps to a range of 3.5%–3.75%, matching the consensus by markets, for a third cut in the year. The decision featured two dissents, with two members opting for a hold while new FOMC Governor Miran opted for a 50bps cut. Additionally, the SEP featured in the meeting indicated that policymakers were more optimistic about growth next year, reflecting a smaller-than-expected initial impact from tariffs. 

Recovery. VN-Index closed at 1,766.9 (+12.06 points, +0.69%) with liquidity falling below the 20-day average. The market saw 168 gainers and 142 losers. The main laggards weighing on the market were VPL, BSR, and VJC, while the top contributors to the index’s gains were VIC, VPB, and BID. Foreign investors were strong net buyers during the afternoon session, totaling 999 billion VND, with a focus on MWG and FPT

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.