Vietnam Insight

Mixed developments across markets. US stock futures moved lower on Friday, extending the previous session’s losses as software and other technology names remained under pressure in after-hours trading. Dow futures slid 0.6%, dragged down by declines in Microsoft and Salesforce, which fell 1.2% and 3.2%, respectively, in extended trade. Cybersecurity firm Zscaler plunged nearly 10% after its latest quarterly deferred revenue and billings came in below expectations. By contrast, Netflix surged 11% after stepping away from its pursuit of Warner Bros. Discovery Inc, citing an increasingly expensive bidding war with Paramount Skydance Corp that rendered the deal financially unattractive. In regular trading on Thursday, the S&P 500 fell 0.54% while the Nasdaq Composite dropped 1.18%, as a sharp pullback in semiconductor shares outweighed rotation into defensive sectors. Nvidia tumbled 5.5% despite beating earnings and revenue estimates, with investors questioning the durability of elevated AI-related spending.

Heading toward resistance level 1,900. VN-Index closed at 1,879.64 (+18.73 points, 1.01%), with liquidity improving to align with the 20-day moving average. The market recorded 136 gainers and 181 losers. The stocks putting the most downward pressure on the index were GAS, GVR, and VNM, while VIC, GEE, and BSR were the primary contributors to its gains. Foreign investors recorded a net selling value of 3,166 billion VND, specifically offloading 2,207 billion VND of VNM and 725 billion VND of FPT. The real estate sector, with VIC hitting the ceiling price, drove the overall index higher.

Trading Strategy: Medium- to long-term investors may consider buying stocks that have yet to advance and are forming tight consolidation bases. However, as the index has rallied strongly and moved into a higher resistance zone, it is preferable to prioritize holding positions and be ready to take short-term profits rather than initiating new positions, especially in stocks that move in line with the broader market.

Buy Recommendation: HDG