Vietnam Insight

The market awaits the policy decision of the US Federal Reserve (Fed), which is expected to hold interest rates steady. US stock futures held steady on Wednesday as investors braced for the upcoming Federal Reserve policy decision, as well as earnings from megacap technology companies. The central bank is broadly expected to keep interest rates unchanged, while traders look for clues about the possibility of a rate hike in December. During Tuesday’s regular session, the S&P 500 and Nasdaq Composite gained 0.6% and 1.18%, respectively, supported by strength in technology shares. The Nikkei 225 Index climbed 1.73% to close at 63,268 on Tuesday, ending a three-day losing streak and tracking a rebound on Wall Street overnight amid renewed optimism for the AI trade after Anthropic’s IPO filing. European equities rose for a second consecutive session on Tuesday, with the Stoxx 50 gaining 0.8% and the Stoxx 600 advancing 0.5%, supported by lower oil prices. Crude oil held below $100 per barrel on Wednesday after sliding for two straight sessions, as markets monitored election results in Israel that could change the trajectory of the Middle East conflict.

Short-term rebound. The market moves within a narrow range right around the MA 50 zone, indicating a balanced trend between supply and demand. Sectors are sharply divergent and liquidity is declining. This balance will only be broken when standout news strong enough pulls the market. Support and resistance are at 1,700 - 1,840, respectively.

Trading strategy: Investors should look at the headline index only as a reference while the market is heavily driven by the Vingroup group. In the short term, caution is still warranted, but opportunities remain in several groups attracting money, such as exports, real estate, industrial-park real estate and retail. Risk-averse investors should favor low-beta stocks with high dividend payouts and low borrowings.

Portfolio: New buy recommendation TCH · Current holding TNG, MWG · Watchlist TCH, HPG, IDC · High-risk names to avoid NVL, PNJ, FPT