HIGHLIGHTS
International News:
The U.S. stock market continued its strong upward trend, reaching new historical milestones as the Dow Jones and S&P 500 closed at record highs on Monday. The Dow Jones rose by 0.69%, surpassing the 44,000-point mark for the first time, while the S&P 500 crossed the 6,000-point level.
National news:
According to VinaCapital, the re-election of Donald Trump as President of the United States would not significantly impact Vietnam's economy as some might fear. Michael Kokalari, Chief Economist at VinaCapital, believes that Vietnam's economy has demonstrated resilience against recent global fluctuations and will be less affected by the "America First" policy. Additionally, Vietnam benefits from the shift of manufacturing away from China due to U.S.-China trade tensions, with exports to the U.S. increasing sharply. However, VinaCapital advises caution regarding inflation risks and the potential for short-term foreign investment inflows to create asset bubbles.
TRADING STRATEGY
The stock market pared losses by the end of the session, closing at 1,250 points with improved liquidity compared to last week’s average. Market divergence is widening, with selling pressure focused on large-cap stocks in finance and retail, while mid- and small-cap stocks in basic resources, technology, services, and chemicals provided positive support to the index. The VN-Index is expected to remain around the 1,250–1,255 range today.
The market is currently moving sideways within a set range and maintains stable support around the 1,240–1,245 level, although general sentiment remains cautious. Cash flow is rotating in a selective manner, primarily focused on mid- and small-cap stocks with solid fundamentals. Investors are prioritizing stocks that show clear recovery trends and supporting cash flow, while accumulating stocks in core portfolios should continue with careful management to avoid excessive diversification.
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