Recommendations

▶ Market movements remained largely unchanged on Thursday, with the VN-Index closing almost flat at the reference level. VIC and VHM recovered well, supporting the index, while other blue-chip stocks declined slightly or remained flat. Liquidity did not improve significantly, with the trading volume below the 20-day average. Although there were some fluctuations and corrections, overall selling pressure was insignificant, a positive sign in the current context. However, improved capital flows are needed for the recovery momentum to spread more strongly. ▶ At the close of trading, the VN-Index fell 0.86 points (-0.05%), closing at 1,866.35 points; the HNX-Index fell 6.43 points (-2.05%), reaching 313.16 points. Liquidity across all three exchanges remained flat at 18.4 trillion VND, corresponding to approximately 642 million shares traded. Following yesterdays net buying session, foreign investors returned to net selling with a value of VND 438 billion in todays trading session. The stocks with the strongest net selling were TCB, HPG, and MSN. Conversely, typical stocks with net buying included VIC, VNM, and MCH. ▶ Technical perspective: Todays trading session can be seen as a relatively positive supply test for the VN-Index. Although the index experienced fluctuations during the session, selling pressure did not increase significantly, and liquidity in the correction zone remained low, indicating that low-priced supply is gradually weakening and the supply shortage is becoming increasingly evident. In the short term, we expect the VN-Index to continue fluctuating within the 1,850–1,870 point range to consolidate its price base before forming a new trend. The market is currently awaiting sufficiently strong catalysts, including upcoming quarterly earnings results, supportive macroeconomic policies, and improved cash flow, to create momentum for a more sustainable upward movement. In the base-case scenario: A peace agreement between the US and Iran could help reduce inflationary pressure, improve global growth prospects, and support capital flows back to emerging markets, including Vietnam, in the second half of 2026. Besides external factors, the domestic market is also supported by policies promoting economic growth, abundant liquidity, and expectations of increased passive capital flows after Vietnam is officially upgraded to emerging market status by FTSE Russell from September 2026. The synergy of these factors could create momentum for the market to enter a new growth cycle, with the VN-Index aiming for a target range of 2,000–2,100 points in the positive scenario. In the negative-case scenario: Global reserves have decreased sharply during the recent war period. If no agreement is reached in June-July, oil prices are likely to surge during the peak summer months. Given the negative developments, risky asset classes in general and the VN-Index face a deeper correction (retesting the 1,580 point level). Strategy: Investors can focus on selecting stocks with sideways consolidation and strong business growth rather than solely focusing on VN-Index fluctuations for medium-term positions. In the short term, consider stocks that have been heavily sold off and are showing signs of recovery, such as insurance, technology, and real estate stocks. Investors should limit the use of margin trading during this period when the trend is not clearly defined.  

Cautious Sentiment Ahead of the June Jobs Report. US stock futures edged lower on Thursday as investors remained cautious ahead of the June jobs report, which is expected to provide fresh clues about labor market conditions and the Federal Reserve’s interest rate outlook. Data released on Wednesday showed private-sector hiring slowed more than expected last month. Fed Chair Kevin Warsh also said inflation expectations had eased over the past month while reaffirming the central bank’s commitment to restoring price stability. In regular trading on Wednesday, the tech-heavy Nasdaq Composite fell 0.66% as investors reassessed the durability of the AI-driven rally, while the S&P 500 and Dow Jones lost 0.22% and 0.03%, respectively. Chipmakers and memory stocks led the decline, with steep losses from Micron Technology (-10.6%), Sandisk Corp (-10.6%), AMD (-6.9%), Intel (-9%), and Applied Materials (-10%).   Accumulating ahead of a breakout. The VN-Index closed at 1,867.21, up 7.02 points (+0.39%), with trading volume in line with the 20-day average. Market breadth remained positive, with 195 advancers and 121 decliners. MCH, VCB, and BSR were the largest positive contributors to the index, while VIC, VHM, and VPL exerted the greatest downward pressure. Foreign investors recorded net buying of VND 354 billion, primarily driven by VPB, which accounted for VND 327 billion of the total net inflow.   Trading Strategy: Investors may focus on stocks with sideways consolidation patterns and strong earnings growth rather than concentrating solely on VN-Index fluctuations for medium-term positioning. In the short term, opportunities may emerge in heavily sold off stocks showing signs of recovery, such as insurance, technology, and real estate sectors. Investors should limit the use of margin when the trend is not clearly defined during this period. Current portfolio: MBB; CTD Watchlist: HPG, KDH, SSI, Real estate stocks (PDR, NLG, DXG)

▶ The market maintained its upward momentum on Wednesday, closing up 7 points. The banking sector was a highlight, with many stocks showing strong gains and contributing significantly to the VN-Indexs rise, notably VCB, TCB, VPB… The oil and gas sector also performed quite positively on expectations of strong profit growth in the second quarter, exemplified by BSR with a price increase of over 5% and estimated profits quadrupling. Market liquidity remained flat, indicating no significant improvement in cash flow. Foreign investors reversed their position to net buying, although the net buying value was limited. ▶ At the close of trading, the VN-Index rose 7.2 points (+0.39%), closing at 1,867.21 points; the HNX-Index remained unchanged at 313.16 points. Liquidity across all three exchanges reached VND 18.6 trillion, equivalent to approximately 695 million shares traded, similar to yesterdays level. A positive sign was that foreign investors reversed to net buying, with a net purchase value of VND 330 billion. The stocks with the strongest net buying were VPB, HDB, and VIC; conversely, the stocks with the strongest net selling included VHM, HPG, and VNM. ▶ Technical perspective: The VN-Index rose mainly due to the support of large-cap stocks, while liquidity remained low. The market continues to be in a state of fluctuation due to a lack of leading momentum, but capital flows are showing signs of improvement and are gradually concentrating on the financial sector, especially banking and securities, thereby creating expectations of positive spillover effects in the near future. In the short term, we believe the VN-Index will trade around the 1,850 – 1,870 range and will still heavily depend on the fluctuations of the Vingroup group. The market is currently awaiting sufficiently strong catalysts from business results, macroeconomic policies, or new capital inflows to trigger the return of capital flows into sectors other than Vingroup. In the base-case scenario: A peace agreement between the US and Iran could help reduce inflationary pressure, improve global growth prospects, and support capital flows back to emerging markets, including Vietnam, in the second half of 2026. Besides external factors, the domestic market is also supported by policies promoting economic growth, abundant liquidity, and expectations of increased passive capital flows after Vietnam is officially upgraded to emerging market status by FTSE Russell from September 2026. The synergy of these factors could create momentum for the market to enter a new growth cycle, with the VN-Index aiming for a target range of 2,000–2,100 points in the positive scenario. In the negative-case scenario: Global reserves have decreased sharply during the recent war period. If no agreement is reached in June-July, oil prices are likely to surge during the peak summer months. Given the negative developments, risky asset classes in general and the VN-Index face a deeper correction (retesting the 1,580 point level). Strategy: Investors can focus on selecting stocks with sideways consolidation and strong business growth rather than solely focusing on VN-Index fluctuations for medium-term positions. In the short term, consider stocks that have been heavily sold off and are showing signs of recovery, such as insurance, technology, and real estate stocks. Investors should limit the use of margin trading during this period when the trend is not clearly defined.  

Update coverage with BUY call and target price of VND 16,900 Deo Ca Traffic Infrastructure Investment JSC (HHV) was established in 1974, originating from the Thong Nhat Workshop under Construction Board 67. HHV is one of Vietnams leading investors, operators, and contractors in transport infrastructure. With six BOT transport infrastructure projects generating stable cash flows, alongside promising revenue from its infrastructure construction segment. We update coverage on HHV with a target price of VND 16,900, implying an upside of 47%. We value HHV using the Sum-of-the-Parts (SOTP) valuation method.

Global equities advanced broadly. US stock futures were little changed on Wednesday after the major indexes advanced in the previous session, supported by strength in technology stocks and easing inflation concerns. In regular trading on Tuesday, the tech-heavy Nasdaq Composite jumped 1.52%, while the S&P 500 and Dow rose 0.79% and 0.26%, respectively. Chipmakers and AI-related companies led the gains, with Nvidia (2.6%), AMD (7.7%), Intel (6%), Sandisk (10.9%) and Marvell Technology (7.3%) posting strong advances. The three major indexes also ended the quarter on a strong footing, with the S&P 500 rallying more than 14%, the Nasdaq soaring about 20% and the Dow adding over 12%. Investors now turn their attention to Fed Chair Kevin Warsh’s appearance at the ECB Forum in Sintra, Portugal, for further clues on the outlook for monetary policy.   Accumulating ahead of a breakout. The VN-Index closed at 1,860.01, gaining 5.04 points (+0.27%), with trading volume broadly in line with the 20-day average. Market breadth was relatively balanced, with 146 advancers and 148 decliners. VIC, VHM, and MCH were the largest positive contributors to the index, while LPB, HPG, and VNM exerted the greatest downward pressure. Foreign investors recorded a net sell of VND 1,167 billion, primarily driven by VPB and FPT.   Trading Strategy: Investors may focus on stocks with sideways consolidation patterns and strong earnings growth rather than concentrating solely on VN-Index fluctuations for medium-term positioning. In the short term, opportunities may emerge in heavily sold off stocks showing signs of recovery, such as insurance, technology, and real estate sectors. Investors should limit the use of margin when the trend is not clearly defined during this period. Current portfolio: MBB; CTD Watchlist: HPG, KDH, SSI, Real estate stocks (PDR, NLG, DXG)