Vietnam Insight

Positive movements across multiple markets. US stock futures were little changed on Tuesday after equities began the new trading month on a positive note. In Monday’s regular session, the S&P 500 gained 0.41%, the Nasdaq Composite rose 0.67%, and the Dow edged up 0.08%. These gains came despite rising trade tensions between the US and China. Beijing pushed back against President Donald Trump’s accusation that it had breached a temporary trade agreement. Markets are closely watching for a potential call this week between Trump and Chinese President Xi Jinping, which could offer much-needed clarity on the trade front. Meanwhile, the EU criticized Trump's proposal to double steel tariffs to 50%, warning the move could undermine ongoing negotiations with the US. Investors now turn their attention to key economic reports due Tuesday, including data on job openings, durable goods, and factory orders.

Resistance around the recent peak. VNINDEX closed at 1,336.30 (+3.70 points, +0.28%) with liquidity around the average level. The market had 201 stocks increasing and 165 stocks decreasing, the energy and real estate groups increased well during the session. The stocks contributing the most to the market's increase were TCB, GVR, STB while VPL, VHM, BID contributed to the market's decrease. Foreign investors net sold more than 200 billion, the value mainly concentrated in HPG and MSB stocks.

Trading Strategy: Investors are temporarily holding off on buying stocks that have already seen strong gains, as capital may shift toward stocks trading below their 200-day or 50-day moving averages. For new buying positions, priority can be given to real estate and banking stocks that are trading at low levels with a consolidation base; however, the allocation should remain modest.

Buy Recommendation: BVH MBB