Vietnam Insight

U.S. stocks plunged. US stock futures steadied on Wednesday after the major averages slumped in the previous session on escalating tensions between Washington and Europe over President Donald Trump’s ambitions to take over Greenland. Over the weekend, Trump threatened to impose new tariffs on eight European countries opposing the plan unless a deal is reached. He is scheduled to meet with various stakeholders to discuss Greenland at the World Economic Forum in Davos on Wednesday. In regular trading on Tuesday, the Dow fell 1.76%, the S&P 500 slid 2.06%, and the Nasdaq Composite dropped 2.39%, marking the worst daily performance for all three since October 10. US Treasury yields also jumped while the dollar weakened, reflecting eroding confidence in US assets and concerns that Europe’s substantial holdings of US bonds and equities could be leveraged in retaliation. Meanwhile, Netflix shares fell nearly 5% in extended trading despite reporting a narrow Q4 earnings beat.

Profit-taking triggers slight VN-Index retreat. The VNINDEX closed at 1,893.78 (-2.81 points, -0.15%) with trading volume around the average of the last 20 sessions. The market saw 149 gainers and 180 losers. The stocks contributing most to the index's rise were BID, VCB, VNM, and PLX; the stocks contributing most to the index's decline were VHM, VIC, and GEE. Foreign investors net sold VND 1,793 billion, mainly focusing on GMD, VNM, and VCB.

Trading Strategy: Investors can begin disbursing capital into stocks with positive Q4 earnings results and strong growth prospects for 2026. Favorable candidates include sectors showing improved liquidity and prices returning to trade above the EMA50, such as securities, banking, construction materials, and industrial real estate. Conversely, for sectors exhibiting weakening investment flow—such as residential real estate—investors should consider reducing their weightings to manage risk if stop-loss levels are triggered.