Vietnam Insight

US stocks plunged amid growing concerns over Trump administration policies. On Thursday, the S&P 500 and Nasdaq Composite saw sharp declines, falling 1.78% and 2.61%, respectively, marking their lowest levels in at least four months. The Dow also dropped 0.99%, bringing the week's losses to nearly 3%. These declines came amid rising concerns over the Trump administration’s trade policies, which fueled worries about US economic growth. The decision to delay tariffs on certain goods from Mexico and Canada for a month failed to reassure investors. The US posted a record trade deficit of $131.4 billion in January 2025, up from a downwardly revised $98.1 billion shortfall in December 2024 and exceeding forecasts of a $127.4 billion gap

Lack of buying force to sustain the uptrend. VNINDEX closed at 1,318.22 (+13.51 points, +1.04%) with liquidity remaining high. The market had 365 green codes and 121 red codes. The group of stocks that contributed the most to the market's increase were GVR, VHM, FPT while BSR LPB and SAB contributed to the market's decline. The spread of cash flow helped the entire industry group end the session in green. Foreign investors net bought VND 431 billion.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend, heading towards 1,350 points. Investors can increase their positions during dips with average volume and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors can reduce their portfolio weight to manage risk.

Buy Recommendation: MWG, BVH