Vietnam Insight

Retail sales in the U.S. are lower than expected. On Monday, the Dow climbed 0.85%, the S&P 500 rose 0.64%, and the Nasdaq Composite edged up 0.31%. Retail sales in the US increased 0.2% mom in February 2025, rebounding from a downwardly revised 1.2% fall in January but well below forecasts of a 0.6% rise. Softer-than-expected retail sales data—which showed a modest 0.2% increase in February—fueled speculation that the Federal Reserve may consider rate cuts later this year. Treasury Secretary Bessent also sought to reassure investors, describing market corrections as “healthy” while acknowledging persistent recession risks. Looking ahead, market participants are focused on the Fed’s policy decision on Wednesday, where interest rates are widely expected to remain unchanged.

Real estate leads the market. VNINDEX closed at 1,336.26 (+10.11 points, +0.76%) with slightly reduced liquidity. The market had 270 green codes and 185 red codes. The stocks that contributed the most to the market's increase were VCB, VPB, BCM while FPT GVR and MSN contributed to the market's decline. The real estate group made waves in the session with stocks such as NLG, KDH, DXG. Foreign investors net bought VND 204.12 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: KDH