Vietnam Insight

Stocks slide on trade war fears. US stocks declined on Friday after Donald Trump escalated trade tensions by threatening tariffs on both Apple and the European Union. The S&P 500 fell 0.6%, the Nasdaq 100 dropped 0.9%, and the Dow lost 256 points. Apple shares tumbled 3%, bringing its valuation below $3 trillion, after Trump demanded that iPhones sold in the US be made domestically or face a 25% tariff. He also proposed a 50% tariff on all EU imports starting June 1 due to stalled trade talks, renewing fears of protectionist policies. 

Heighten volatility near 1,300. The VNINDEX closed at 1,314.46, up 0.62 points or 0.05%, with liquidity around the 20-session average. The market saw 98 advancing stocks and 214 declining stocks, with most sectors experiencing downward pressure. The stocks contributing most significantly to the market's gain were GAS, VHM, and GEE, while VPL, TCB, and VPB contributed to the market's decline. Foreign investors net sold nearly 136 billion VND, with the value primarily concentrated in FPT and MSN shares.

Trading Strategy: Investors are holding off on new purchases and looking to sell as the market shows signs of distribution. Following this correction phase, investors may look for opportunities in stocks benefiting from domestic fundamentals, particularly in sectors such as steel, banking, securities, and energy.