Vietnam Insight

Heading into earnings week. US stock futures fell on Monday after President Donald Trump threatened new tariffs on eight European countries to force the “complete and total purchase of Greenland.” The proposed measures target Germany, the UK, France, Denmark, Norway, Sweden, the Netherlands and Finland, with a 10% tariff set to take effect on Feb. 1 and rise to 25% in June unless an agreement is reached. European leaders are weighing a halt to approvals of last year’s trade agreement, while French President Emmanuel Macron may reportedly seek activation of the EU’s anti-coercion instrument. Dow futures slid 0.6%, S&P 500 futures dropped 0.7%, and Nasdaq 100 futures fell 1%. Investors are also looking ahead to a busy earnings week, with results due from major firms including Netflix, Visa and Intel. US markets are closed Monday for a holiday.

A Healthy Correction in an Uptrend. The VN-Index closed at 1,879.13 points (+14.33 points, +0.77%), with liquidity aligning with its 20-session average. The market breadth recorded 143 gainers and 174 losers.The primary contributors to the index's gains were VIC, VHM, FPT, and VCB (this group alone bolstered the VN-Index by nearly 20 points). Conversely, the stocks exerting the most downward pressure were GAS, GVR, and HDB. Foreign investors remained net sellers, with a net outflow of 1,126 billion VND, focusing their selling pressure on PNJ, VIX, and VRE.

Trading Strategy: Investors may initiate positions in stocks with solid fundamentals and improving liquidity that have reclaimed their EMA50, such as Securities, Banking, Construction Materials, and Industrial Real Estate... Conversely, for sectors exhibiting weakening capital inflows—such as Residential Real Estate—investors should consider paring back exposure to manage risk if stop-loss levels are triggered.

Buy Recommendations: PC1, HPG