Vietnam Insight

The Senate narrowly approved President Trump’s tax-and-spending bill. US stock futures held steady on Wednesday following a mixed performance in the previous session. On Tuesday, the Dow Jones climbed 0.91%, buoyed by strong gains in healthcare stocks such as UnitedHealth (+4.5%) and Amgen (+4.1%). Meanwhile, the S&P 500 slipped 0.11% and the Nasdaq Composite fell 0.82%, pressured by a broad selloff in technology shares. Among the hardest hit were Nvidia (-3%), Tesla (-5.3%), and Palantir (-4.1%). On the policy front, the Senate narrowly approved President Trump’s tax-and-spending bill, sending it back to the House for final consideration. Investors also monitored trade developments, with Trump’s 90-day reprieve on sweeping reciprocal tariffs set to expire next week. Separately, Federal Reserve Chair Powell struck a cautious tone on potential rate cuts, citing tariff-driven inflation risks and emphasizing the need for more economic data before taking further action.

Upward trend. VNINDEX closed at 1,377.84, marking a slight increase of +1.77 points (+0.13%) with declining liquidity. There were 117 gaining stocks and 196 declining stocks on the market. The stocks contributing most significantly to the market's rise were VCB, GVR, and HVN, while GAS, MSN, and VHM contributed to its decline. Foreign investors were net sellers of approximately 331 billion VND, primarily in VJC and HDB

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: MWG