Vietnam Insight

The downtrend in many markets. The S&P 500 dropped 0.3%, the Dow Jones lost 155 points, and the Nasdaq 100 declined by over 0.5%. Trump's decision to impose a 25% tariff on imported cars, effective in April, heightened fears of escalating trade tensions, particularly with key trading partners like the EU and Canada. Automaker stocks took a hit, with General Motors falling 7.3% and Ford losing 3.9%, while Tesla gained 0.4%, benefiting from its domestic production. Investors also absorbed fresh economic data, with Q4 GDP growth revised slightly higher to 2.4% from 2.3%, and core PCE inflation rising slightly less than expected. Initial jobless claims were in line with expectations, but the goods trade deficit came in higher than anticipated, adding to market uncertainty.

Decreasing volume. VNINDEX closed at 1,323.81 (-2.28 points, -0.17%) with below-average liquidity. The market saw 156 gainers and 278 losers. The stocks contributing most to the market's gains were FPT, SHB, and GVR, while BID, VCB, and CTG contributed to the market's decline. The financial and real estate sectors experienced slight decreases. Foreign investors were net sell of 64 billion VND, focusing mainly on TPB and DBC

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend to reach 1,350 points. After several consecutive rising sessions, the VN-Index may experience alternating declining sessions in the coming weeks. Investors can increase their positions during these declining sessions with average liquidity and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors may reduce their portfolio weight to manage risk.

Buy Recommendation: MIG