Vietnam Insight

Core PCE Inflation Rose 0.2% in August, Below Expectations. US stock futures edged higher on Thursday as investors looked for fresh catalysts at the start of a new trading month, while markets continued to contend with elevated oil prices and Treasury yields. Dow futures rose around 0.2%, while S&P 500 and Nasdaq 100 futures each gained roughly 0.3%. In regular trading on Wednesday, the Dow and S&P 500 fell 0.86% and 0.25%, respectively, while the Nasdaq Composite advanced 0.24%. Financial and industrial stocks weighed on the market as Treasury yields climbed on concerns about persistent energy-driven inflation, with the US and Iran making little progress in negotiations. Meanwhile, core PCE inflation increased a smaller-than-expected 0.2% in August, raising hopes that the Federal Reserve will hold off on raising rates in October. Investors now await the latest weekly jobless claims data on Thursday and the September jobs report on Friday. Earnings are also due from Nike, McCormick and Acuity Brands.

Accumulates above MA 50. The VN-Index ended the trading session at 1,768.6 points (-9.11 points, -0.51%), with low liquidity. There were 129 gainers and 178 decliners during the session. VIC and VHM were the top negative contributors to the index, while VPB and GEE provided positive contributions. Foreign investors posted approximately VND 888 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.

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