Vietnam Insight

US inflation lower than expected. On Thursday, the S&P 500 dropped 1.39%, pushing it more than 10% below its record high from last month and into correction territory. The Nasdaq Composite fell 1.96%, deepening its losses, while the Dow declined 1.3%. Meanwhile, the small-cap-focused Russell 2000 tumbled nearly 19% from its recent peak, edging closer to a bear market. Market jitters intensified after Trump threatened a 200% tariff on European wines and spirits in retaliation for the EU’s proposed duties on American whiskey. Adding to the mix, producer price inflation data came in softer than expected, with the headline figure remaining flat and the core rate dipping 0.1%, reinforcing Thursday’s cooler-than-expected CPI report.

Slight decrease from high level. VNINDEX closed at 1,326.27 (-8.14 points, -0.61%) with liquidity remaining high. The market had 121 green codes and 366 red codes. The group of stocks contributing the most to the market's increase was VIC, VHM, MSN while VCB BID and TCB contributed to the market's decrease. Most industry groups adjusted slightly, but some VIN stocks increased well. Foreign investors net bought VND152.53 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.