Vietnam Insight

Ease trade tensions. US stock futures slipped slightly on Thursday as traders assessed the latest batch of earnings reports. In extended trading, Tesla fell nearly 4% after mixed quarterly results, while IBM sank over 6% amid lackluster software revenue. On Wednesday, the Dow declined 0.71%, the S&P 500 dropped 0.53% and the Nasdaq Composite slid 0.93%, following reports that the White House may restrict exports to China involving US software. President Donald Trump later said his upcoming meeting with Chinese President Xi Jinping is “scheduled,” easing some tension over US-China ties. Investors now await more earnings later this week and Friday’s CPI release for further economic signals.

Technical rebound – consolidation phase. VNINDEX closed at 1,678.5 (+15.07 points, +0.91%) with liquidity lower than the 20-session average. The market had 218 gaining codes and 113 declining codes. The stock groups contributing most strongly to the market's rally were VPL, VHM, GAS; those contributing to the market's decline were TCX, SHB, and VIC. Foreign investors were net sellers at a strong level of 1,625 billion VND.

Trading Strategy: Short-term investors should refrain from making new purchases for now and wait for the market to form a price base. If the market successfully retests the 1,600-point level, investors may consider allocating capital for medium- to long-term positions, focusing on stocks with strong catalysts — such as those benefiting from market reclassification, robust earnings growth, or valuations that remain lower than the broader market

Buy Recommendation: MWG