Vietnam Insight

ADP employment data showed a modest recovery. US stock futures steadied on Thursday after major averages ended mixed in the previous session, as investors digested a fresh batch of economic data. In regular trading on Wednesday, the Dow and the S&P 500 fell 0.94% and 0.34%, respectively, with both benchmarks pulling back from record closing highs. Cyclical sectors that typically underperform during periods of economic softness weighed on the market, including industrials, materials, and financials. By contrast, the tech-heavy Nasdaq Composite edged up 0.16%, supported by a 2.5% rally in Google parent Alphabet. On the macro front, JOLTS data showed a sharp drop in job openings, signaling cooling labor demand, while ADP reported a modest rebound in private-sector hiring and the ISM Services PMI surprised to the upside. Investors are now turning their attention to weekly jobless claims due Thursday and the December employment report on Friday for further insight into the labor market and the Federal Reserve’s policy outlook.

Uptrend. VNINDEX closed at 1,861.58 (+45.31 points, +2.49%) with liquidity exceeding the 20-day moving average. The market saw 256 gainers and 79 losers. The main laggards weighing down the market were STB, VPL, and GEE, while VIC, VHM, and VCB were the largest contributors to the index's gains. Foreign investors recorded a net buy of 521 billion VND, focusing on FPT and HPG; meanwhile, STB faced heavy net selling pressure totaling 1,144 billion VND.

Trading Strategy: Short-term investors may consider participating in stocks showing strong upward signals above the 20-day moving average (MA 20), such as the banking, oil & gas, utilities, and state-owned enterprise groups. Pullbacks toward the 1,800 level may present opportunities for new buying. For medium-term investors, declines toward the 1,720 area represent attractive entry points for capital deployment.