Vietnam Insight

Concerns about the trade war with the US have eased. US stock futures held steady on Wednesday as investors awaited earnings from chipmaking giant Nvidia, which are expected to shed light on the impact of export restrictions to China. During Tuesday’s regular session, the Dow rose 1.78%, the S&P 500 advanced 2.05%, and the Nasdaq Composite surged 2.47%. The rally followed President Donald Trump’s announcement to delay a proposed 50% tariff on the European Union, fueling optimism that tariff levels may have peaked. Investors were also encouraged by the prospect of corporate-friendly policies, including potential tax cuts and deregulation.

Resistance around the recent peak. VNINDEX closed at 1,339.81, up 7.30 points (0.55%), with improved liquidity exceeding the 20-session average. The market saw 230 advancing codes and 88 declining codes, with most sectors experiencing slight gains during the session. The stocks contributing most significantly to the market's increase were HVN, VHM, and BID, while VPL, VCB, and LPB contributed to the market's decline. Foreign investors net sold over 1,106 billion VND, primarily concentrated in HPG and VIX 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. Opportunities may open up on down sessions.