Vietnam Insight

Concerns about geopolitical risks. US equities closed higher on Friday, with the S&P 500 and Nasdaq adding 1.6% each, while the Dow rose 601 points. The market briefly pulled back after a tense exchange between President Donald Trump and Ukraine President Volodymyr Zelenskyy in the Oval Office, raising concerns over escalating geopolitical risks. Additionally, Trump's tariff threats reignited retaliation warnings from China, increasing uncertainty, especially in Big Tech. Economic data sent mixed signals: core PCE inflation eased to 3.7% as expected, but consumer spending unexpectedly dropped 0.2% in January. 

Large-cap stocks experienced pressure during the last trading session of the week. The VNINDEX closed at 1,305.36 (-2.44 points, -0.19%) with higher liquidity compared to the 20-session average.The market saw 193 gaining stocks and 265 losing stocks.Blue-chip stocks experienced short-term profit-taking pressure. The stocks contributing most to the market's gains were GVR, NVL, and EIB, while VCB, HPG, and LPB contributed to the market's decline. Foreign investors were net sellers of 985 billion VND.

Trading Strategy: The market has broken through a key resistance level in the short term but lacks a necessary correction.Investors may consider taking profits on ½ of their portfolio and holding the remainder to allow profits to run; EMA 20 can be used as a reference for selling points. New buying opportunities will be suitable when the market retests the old resistance area of 1,280 – 1,300 and shows signs of rebounding.

Buy Recommendation: POW