Vietnam Insight

Mr. Powell reiterated that inflation and labor market risks remain. US stock futures held firm on Thursday after major indexes fell for two consecutive sessions, weighed down by weakness in AI leaders, mixed Federal Reserve signals, and profit-taking near record highs. In extended trading, Intel gained over 2% on reports it approached Apple about a potential investment. During Wednesday’s session, the Dow slipped 0.37%, the S&P 500 declined 0.28% and the Nasdaq Composite dropped 0.33%, with all three benchmarks extending their pullback from all-time peaks. Fed Chair Jerome Powell also reiterated this week that inflation and labor market risks remain while warning that equity prices appear stretched. Investors now turn to Thursday’s weekly jobless claims data for further clues on the interest rate outlook.

Sideway waiting for further news. VNINDEX closed at 1,657.46 (+22.20 points, +1.36%) with liquidity lower than the 20-session average. The market had 231 gainers and 88 losers. The stocks that contributed the most to the market's increase were VPB, TCB, HDB while VHM, VIC, BMP contributed to the market's decline. Foreign investors net sold more than VND1,509 billion, concentrated in VHM and SSI.

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.

Buy Recommendation: HPG