Vietnam Insight

U.S. retail sales stall. US stock futures edged higher on Wednesday after the major indexes ended mixed in the previous session, as investors positioned ahead of the delayed January jobs report. The economy is expected to have added 70,000 jobs last month, following a 50,000 increase in December, while the unemployment rate is forecast to hold steady at 4.4%. A weaker-than-expected print could dampen risk appetite, particularly after retail sales data released Tuesday unexpectedly stalled, signaling rising pressure on lower- and middle-income consumers. In regular trading on Tuesday, the Dow climbed 0.1% to another record close, while the S&P 500 and Nasdaq Composite slipped 0.33% and 0.59%, respectively. Technology stocks led the declines, with chipmakers and memory producers underperforming. Financial shares also retreated after tech platform Altruist launched a new AI-powered tax-planning tool, adding competitive pressure on traditional financial services firms.

Back to the trading zone 1,700 – 1,800. VN-Index closed at 1,754.03 (-0.79 points, -0.05%) with liquidity staying approximately 50% below the 20-day average. The market saw 97 gainers and 216 losers. Stocks putting the most downward pressure on the index were GAS, BID, and VCB, while VIC, VHM, and VCK were the primary contributors to the index's gains. Foreign investors recorded a net buy of VND 761 billion, focused mainly on MBB (VND 571 billion)

Trading Strategy: Short-term investors should prioritize holding existing positions and be ready to sell according to plan. Temporarily refrain from new purchases and strictly limit margin usage as liquidity tends to decline ahead of the Lunar New Year. For medium-term investors, the power sector continues to show good momentum, while the real estate sector is trading at relatively low price levels.