Vietnam Insight

Fed raises interest rates by 25bps for the first time since 2023. The Fed unanimously raised the target range for the federal funds rate by 25bps to 3.75%-4.00% in September 2026 as expected, marking the first rate hike since 2023. Policymakers noted that inflation remains elevated, and the move aims to support a more timely return to the 2% target. Dow futures gained 0.2%, while S&P 500 and Nasdaq 100 futures advanced 0.3% and 0.5%, respectively. In regular trading on Wednesday, the Dow dropped 1.21%, weighed down by losses among financial services stocks. The S&P 500 and Nasdaq Composite also fell 0.45% and 0.01%, respectively, giving up gains made earlier in the session. As widely expected, the Fed raised its benchmark interest rate by 25 basis points to 3.75%-4% while signaling another rate increase later this year. The central bank is seeking to curb inflationary pressures as oil prices climbed above $100 per barrel. 

Sideways trading within a wide range, return to the 1,800 area. The VN-Index ended the session at 1,810.11 points (-1.04 points, -0.06%) on low liquidity. A total of 116 stocks advanced, while 194 declined. SSB, GVR, and DMX were the main positive contributors to the index, while VCB and GAS weighed on the index. Foreign investors posted net buying of VND 212bn, mainly concentrated in SBT and FPT.

Trading Strategy: Investors should remain patient and wait for low-volume volatility/corrections to identify suitable entry points. The preferred strategy is to focus on stocks that have not risen significantly, have established accumulation bases, solid business fundamentals, reasonable valuations, and strong participation from foreign investors.

Buy Recommendation: VCB 

Current portfolio: VRE, FPT; Watchlist: HPG, TCH BVH, GAS and securities stock (HCM, SSI, VCI…)