Vietnam Insight

Investors await the PCE price index. US stock futures slipped on Wednesday as investors awaited the latest US PCE price index report, the Federal Reserve’s preferred measure of inflation. Nvidia’s quarterly results, due after the closing bell, will also be closely watched for signs of continued strength in artificial intelligence-driven demand. Meanwhile, Fed Chair Kevin Warsh is scheduled to speak at the annual Jackson Hole symposium on Friday, although he is not expected to provide clear guidance on the central bank’s policy decision in September. In regular trading on Tuesday, the Dow gained 0.3%, the S&P 500 rose 0.32%, and the Nasdaq Composite advanced 0.66%. Technology stocks led the gains, with companies tied to AI infrastructure outperforming. The advance came as long-term Treasury yields retreated from recent highs, while softer oil prices helped ease concerns over inflation.

Range-Bound trading with resistance at 1,800. The VN-Index ended the session at 1,791.41 points, up 2.63 points (+0.15%), with trading volume above the 20-session average. 93 stocks advanced, while 225 declined. VIC, MCH, and LPB were the top positive contributors to the index, while HPG, GAS, and BSR exerted the largest negative impact. Foreign investors recorded net buying of VND284 billion, mainly concentrated in VIC and VIX.

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: MBB, POW, NVL; Watchlist: HPG, REE, BVH

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