Vietnam Insight

Awaiting inflation data, with markets still divided over the likelihood of a rate hike. US stock futures were little changed on Wednesday as investors awaited a key inflation reading that could shape the Federal Reserve’s next policy decision. The consumer price index report is due later today, followed by producer inflation data on Thursday. Markets remain divided over whether the Fed will raise rates by 25 basis points in September after keeping them unchanged in July, with rising oil prices reinforcing expectations for a more hawkish stance. In corporate news, CoreWeave surged more than 14% in extended trading after the artificial intelligence spending boom lifted the company’s sales outlook. Super Micro Computer also jumped more than 7% after the data center infrastructure provider issued upbeat guidance for first-quarter earnings and revenue. Investors now turn their attention to more earnings reports on Wednesday from Cisco Systems, Cerebras and Enersys, among others.

Range-Bound Trading with Resistance at 1,800. The VN-Index closed the trading session at 1,773.41 points (down 3.36 points, or 0.19%), with trading volume falling below the 20-session average. During the session, 162 stocks advanced while 155 declined. Stocks exerting a positive influence on the index included LPB, VHM, and GEE, whereas GAS, VCB, and CTG weighed on the index. Foreign investors were net sellers totaling nearly VND 769 billion, focusing their sales on TCB, VHM, and FPT, while net buying VNM, FRT, and LPB.

Trading Strategy: Investors may take advantage of market pullbacks to gradually accumulate positions while maintaining a prudent cash allocation to manage risk and preserve flexibility to increase exposure once a market recovery is confirmed. Investors should avoid using margin to bottom-fish, as the market may still be in the process of forming a second bottom. In addition, technical rebound sessions provide an opportunity to rebalance portfolios by reducing exposure to companies whose business performance has fallen short of expectations.

Current portfolio: LPB, PAN, MBB, POW; Watchlist: HPG, REE, NVL

High-risk stocks to avoid: Real estate (PDR, KDH, NLG), HDG and PNJ