Vietnam Insight

Steady movement. US stock futures were little changed on Monday as investors awaited new catalysts to drive momentum. Attention this week centers on the latest personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, which is expected to show subdued price pressures. Last week, the Dow advanced 1.05%, the S&P 500 gained 1.22% and the Nasdaq Composite jumped 2.21%, with all three indexes setting fresh record highs. Those gains followed the Fed’s widely anticipated quarter-point rate cut, its first since December, alongside guidance for two more reductions this year. Markets also monitored a lengthy call between President Trump and Chinese President Xi Jinping, where Trump cited progress on trade, fentanyl, and a potential TikTok agreement. On Sunday, Trump added that conservative media mogul Rupert Murdoch and his son Lachlan are likely to play a role in securing TikTok’s future in the US.

Stagnant around the peak. VNINDEX closed the last session of the week at 1,658.62 (-6.56 points, -0.39%) with liquidity lower than the 20-session average. The market had 133 gainers and 189 losers. The group of stocks that contributed the most to the market's increase were VIC, LPB, GEE while VCB, VHM, BID contributed to the market's decrease. Foreign investors net sold more than VND2,822 billion, concentrated in VHM, SSI, STB.

Trading Strategy: Prioritize a hold strategy while being ready to sell when targets are achieved. For short-term traders: if the market corrects toward 1,600 and bounces, consider deploying a small allocation. If the index retreats to the 1,540 region, this would present a clearer medium-term buying opportunity. Investors can allocate more aggressively, focusing on stocks with strong drivers such as beneficiaries of the upgrade, companies with robust earnings growth, or those with valuations below the market average.