Vietnam Insight

Prolonged US-China trade tensions and the ongoing US government shutdown. US stock futures were flat on Thursday following another turbulent session on Wall Street, as investors weighed upbeat bank earnings, persistent US-China trade frictions, and the ongoing government shutdown. On Wednesday, the S&P 500 and Nasdaq Composite advanced 0.4% and 0.66%, respectively, while the Dow slipped 0.04%. The S&P 500 swung between gains of 1.2% and losses of 0.48% during the session. Strong quarterly results from Morgan Stanley and Bank of America highlighted robust dealmaking activity, while solid earnings from ASML underscored steady AI-related demand. Meanwhile, markets remained cautious amid renewed trade sparring between Washington and Beijing and as the shutdown extended into its third week. Investors now look ahead to more corporate results, with Salesforce, United Airlines, and J.B. Hunt Transport Services seeing sharp moves in after-hours trading.

Uptrend. VNINDEX closed at 1,757.95 (−3.11 points, −0.18%), with liquidity remaining flat at the 20-session average. The market had 120 gainers and 200 decliners. The stock group contributing most strongly to the market's increase was VPB, VJC, and GEE; contributing to the market's decline was VHM, VIC, and VCB. Foreign investors continued to net sell strongly, totaling 829 billion VND.

Trading Strategy:  Prioritize a holding strategy and limit new purchases during breakouts. In a positive scenario, if the VN-Index successfully tests and holds the 1,700 level, investors can consider increasing exposure during subsequent pullbacks to ride the upcoming uptrend. If the market retreats to around the 1,600 zone, clearer buying opportunities will emerge — investors may focus allocations on stocks with strong catalysts such as re-rating benefits, robust earnings growth, or valuations that remain lower than the broader market.