Vietnam Insight

U.S. stocks declined. US stock futures steadied on Friday after the major averages sold off in the previous session on renewed AI concerns, while investors awaited the January consumer price index report. The CPI is expected to show headline inflation easing to 2.5% from 2.7% and core inflation moderating to 2.5% from 2.6%. In extended trading, Applied Materials surged 12% after posting stronger-than-expected earnings and issuing an upbeat outlook. Rivian jumped 16% on robust vehicle delivery guidance for the year. By contrast, Pinterest plunged 18% following weaker-than-expected quarterly results and a soft forecast. During Thursday’s regular session, the Dow Jones Industrial Average fell 1.34%, the S&P 500 declined 1.57%, and the Nasdaq Composite dropped 2.03%. The selloff was driven by persistent concerns over the sustainability of elevated AI-related capital expenditures, with fears of disruption to traditional business models weighing particularly on software, real estate, and trucking stocks.

Heading toward the MA20 resistance level around 1,824. VN-Index closed at 1,814.09 points, gaining 17.24 points (+0.96%), as it edges toward the MA20 resistance level near 1,824. Market liquidity saw a significant drop, falling over 50% compared to recent sessions. Market breadth remained positive with 177 gainers versus 135 losers.The index faced downward pressure from BID, MBB, and VCB, while VIC, VHM, and BSR served as the primary pillars supporting the upward trend. Foreign investors remained net buyers to the tune of 342 billion VND, with a heavy focus on VIC, which saw a net inflow of 202 billion VND.

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.