Vietnam Insight

The strong uptrend in U.S. stocks continues. US stock futures edged lower on Thursday, following a mixed session on Wall Street as investors digested shifting trade policies and renewed momentum in the tech sector. In after-hours trading, Foot Locker surged 69% after reports that Dick’s Sporting Goods is nearing a $2.3 billion acquisition deal. Conversely, UnitedHealth plummeted 8% amid news that Japan’s central bank is investigating the insurer. During Wednesday’s regular session, the Dow dipped 0.21%, while the S&P 500 and Nasdaq Composite posted gains of 0.1% and 0.72%, respectively. Eight of the S&P’s 11 sectors declined, led by losses in healthcare, materials, and real estate.

The short-term recovery continues. VNINDEX closed at 1,309.7 (+16.30 points, +1.26%) with liquidity around the 20-session average. The market had 189 gainers and 122 losers, the market spread across many industry groups, of which banking and technology groups were the ones that contributed well. The stocks that contributed the most to the market's growth were VCB, BID, VPL while VHM GVR and VRE contributed to the market's decline. Foreign investors net bought nearly VND2,265 billion 

Trading Strategy: Long-term investors may consider disbursing into stocks with solid fundamentals that benefit from domestic internal drivers such as steel, banking, securities, and energy. However, the allocation to stock should be reduced as many stocks have already recovered significantly from their bottom levels.

Buy recommendation: PDR