Vietnam Insight

Awaiting the December jobs report. US stock futures were little changed on Friday as investors awaited the December jobs report, a key data point expected to provide further insight into labor market conditions and the Federal Reserve’s policy outlook. Markets were also focused on a potential US Supreme Court ruling regarding the legality of tariffs imposed by the Trump administration. In regular trading on Thursday, the Dow rose 0.55%, the S&P 500 edged up 0.01%, and the Nasdaq Composite declined 0.44%. The session reflected a rotation out of high-growth technology stocks into other sectors amid increasing scrutiny over AI-related capital expenditures. Semiconductor and AI-linked stocks led the declines, including Nvidia (-2.2%), Micron Technology (-3.7%), Broadcom (-3.2%), AMD (-2.5%) and Palatir (-2.7%). In contrast, defense stocks rallied after President Trump called for a $1.5 trillion US military budget for 2027, with Lockheed Martin up 4.4%, Northrop Grumman 2.4%, and Kratos Defense 13.8%.

Uptrend. The VN-Index closed at 1,855.56, down 6.02 points (-0.32%), with liquidity surpassing the 20-session average. Market breadth leaned slightly negative with 144 gainers compared to 183 losers. While VHM, VIC, and VPL acted as the primary drags on the index, it is worth noting that VIC, VHM, and VCB also emerged as the top contributors to the index's upside. On the investment front, foreign investors were net buyers to the tune of 520 billion VND, focusing their interest on VIC and SHB, whereas MCH faced significant selling pressure with a net outflow of 668 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.

Buy recommendation: SSI