Vietnam Insight

Stable movement. US stock futures were flat on Wednesday following a strong session for equities, as easing geopolitical tensions and falling oil prices lifted investor sentiment. On Tuesday, the S&P 500 and Nasdaq Composite climbed 1.11% and 1.43%, respectively, with both indexes approaching record highs. The Dow added 1.19%. Gains came after a US-brokered ceasefire between Israel and Iran appeared to hold, despite isolated clashes. Meanwhile, oil prices fell for a second straight day and are now down nearly 20% from recent highs. On the policy front, Federal Reserve Chair Jerome Powell struck a cautious tone in congressional testimony, signaling no urgency to change interest rates but reaffirming openness to a cut if conditions justify it. Investors now turn their attention to Powell’s upcoming appearance before the Senate Banking Committee, along with data on new home sales. Earnings results from General Mills, Micron, and Paychex are also on the radar.

Upward trend. VNINDEX closed at 1,366.77, marking an increase of 8.59 points or 0.63%, with liquidity at its 20-day average. The market saw 176 gainers and 127 decliners. Real estate and securities sectors were strong contributors to the market's performance.The stocks that contributed most significantly to the market's rally were VIC, VHM, and HVN, while GAS, BSR, and PLX were the primary contributors to the market's decline.Foreign investors were net buyers of 230 billion VND, primarily focusing on DGW and VND 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: BMP