Vietnam Insight

Positive market movements. US stock futures were little changed on Tuesday following another strong session that lifted benchmark indexes to fresh record highs. On Monday, the S&P 500 rose 0.47% and the Nasdaq Composite advanced 0.94%, both setting new all-time highs, while the Dow added 0.11%. Gains came after President Donald Trump said US-China trade talks were progressing well, with investors also turning attention to Wednesday’s Federal Reserve decision. The central bank is widely expected to cut rates by 25 basis points, while traders will parse Fed Chair Jerome Powell’s press conference for signals on the policy outlook. In corporate news, Tesla climbed 3.6% after CEO Elon Musk revealed a nearly $1 billion stock purchase, his largest ever in the open market, while Nvidia slipped 0.04% after Chinese regulators said the firm violated anti-monopoly rules.

The uptrend continues. VNINDEX closed at 1,684.90 (+17.64 points, +1.06%) with liquidity lower than the 20-session average. The market had 238 stocks increasing and 76 stocks decreasing. The group of stocks contributing the most to the market's increase was BID HVN CTG while VHM HDB VPB contributed to the market's decrease. Foreign investors net sold more than VND1,321 billion, concentrated in FPT and HPG.

Trading Strategy: Priority strategy: hold positions and be ready to sell as the index approaches 1,700. Recommended allocation: 50% equities, with potential to add if the index successfully retests the 1,550 support zone (50-day MA). If the index breaks below the 50-day MA (~1,550), investors should fully exit equities. Preferred sectors: Industrial real estate, Securities, Retail, Steel.