Vietnam Insight

Awaiting Wednesday’s PCE Price Index Report – 30Y US Treasury Yield Hits Highest Level Since 2002. US stock futures edged higher on Wednesday after the major averages came under pressure in the previous session, pressured by rising Treasury yields. Futures tied to the Dow, S&P 500 and Nasdaq 100 were each up around 0.2%. During regular trading on Tuesday, the Dow slipped 0.26%, while the S&P 500 and Nasdaq Composite fell 0.17% and 0.09%, respectively. Seven of the 11 S&P sectors finished lower, with energy, materials and consumer staples leading the declines. The moves came as the 30-year Treasury yield climbed as high as 5.62%, reaching levels not seen since June 2002, while the 10-year yield rose to fresh 2007 highs near 5.3%. Investors now await Wednesday’s PCE price index report, the Federal Reserve’s preferred measure of inflation. For the month, the Dow is down roughly 3.5%, while the S&P 500 is little changed and the Nasdaq Composite has gained 1.6%.

Accumulates above MA 50. The VN-Index ended the trading session at 1,777.7 points (-2.95 points, -0.17%), with low liquidity. There were 133 gainers and 170 decliners during the session. VIC and LPB were the top negative contributors to the index, while GVR and GAS provided positive contributions. Foreign investors posted approximately VND 395 billion in net selling.

Trading Strategy: Investors may consider accumulating large-cap stocks at lower levels, particularly those expected to attract upgrade-related capital inflows, with attractive valuations and strong fundamentals (FA). However, investors should remain cautious and avoid chasing stocks at high prices, as the primary trend remains range-bound.

Sell Recommendation: FPT

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