Vietnam Insight

Decline continues amidst geopolitical instability. US stock futures fell further during Thursday’s Juneteenth holiday as heightening geopolitical conflict in the Middle East trimmed riskier positions, while markets continued to assess stagflationary risks from the Fed's SEP. The three main averages were nearly 1% lower following Wednesday's flat close. The Federal Reserve held interest rates steady, with Chair Jerome Powell striking a cautious tone amid rising geopolitical and economic uncertainty. Powell reaffirmed a data-dependent approach, pointing to unclear inflation impacts from President Trump’s tariffs and the risk of stagflation.

Resistance around the recent peak. VNINDEX closed at 1,352.04, marking a gain of 5.21 points or 0.39%, with liquidity at its 20-day average. The market saw 139 advancing stocks and 162 declining stocks. The real estate and banking sectors were strong contributors to the market's performance.The stocks contributing most to the market's increase were VIC, GVR, and TCB, while HPG, FPT, and HVN were the primary contributors to its decline. Foreign investors net sold 893 billion VND, mainly concentrating on FPT and VHM

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