Vietnam Insight

Crude oil surges amid escalating geopolitical tensions. Futures tied to the three major indexes all declined more than 1% on Friday after Israel launched a preemptive strike against Iran in a major escalation of the regional conflict. Israeli Defense Minister Israel Katz declared a special state of emergency, warning that “a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future.” US officials confirmed that the United States had no involvement or role in the operation. Back home, investors turned their attention to the upcoming University of Michigan consumer sentiment report for June, which may offer insight into how households are responding to ongoing trade uncertainty. Earlier this week, softer-than-expected consumer and producer inflation figures reinforced expectations for additional interest rate cuts by the Fed later this year.

Resistance around the recent peak. VNINDEX closed at 1,322.99 (up 7.79 points, or 0.59%) with liquidity around the 20-session average. The market saw 210 advancing stocks and 86 declining stocks, with the banking sector being the best contributor to the market. The stocks contributing most significantly to the market's gain were TCB, HPG, and STB, while VIC, VRE, and VHM contributed to the market's decline. Foreign investors net bought 452 billion VND, with value primarily focused on HPG and DGW shares

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: HDB