Vietnam Insight

Awaiting the FOMC Meeting. US stock futures were little changed on Wednesday after the major averages reached fresh record highs in the previous session, supported by a strong rally in technology stocks. During regular trading on Tuesday, the S&P 500 and Nasdaq Composite advanced 0.58% and 0.45%, respectively, with both indexes closing at record levels. The Dow also climbed 0.49%. Chipmakers were among the strongest performers, led by AMD (2.8%), Marvell Technology (5.8%) and Broadcom (3.7%). Sentiment was further supported as the rise in bond yields paused, easing pressure on the tech sector's credit outlook. Meanwhile, oil prices recovered as ongoing risks to Middle East energy flows outweighed signs of improving regional supply. Investors now await minutes from the Federal Reserve's latest meeting for further clues on the outlook for monetary policy.

Technical Rebound. The VN-Index ended the trading session at 1,759.0 points (+5.88 points, +0.34%), with liquidity improving significantly and exceeding the 20-session average. There were 127 gainers and 177 decliners during the session. FPT and ACB were the top negative contributors to the index, while VPL and VHM provided positive contributions. Foreign investors posted VND 2,728 billion in net selling, mainly due to HDB, where net selling reached approximately VND 2,000 billion.

Trading Strategy: Prioritize defensive stocks with low beta, strong cash flows, high dividend yields, and low leverage amid the high-interest-rate environment. Insurance and utilities could be considered. In the short term, the market may face further downside, so short-term traders should prioritize staying on the sidelines.

Current hodling portfolio: REE; Watchlist: TCH BVH, GAS; High risk stocks to avoid: PNJ NVL