Vietnam Insight

The US and Israel carried out airstrikes against Iran over the weekend. US stock futures declined on Monday as the escalating conflict in the Middle East unsettled financial markets. The US and Israel carried out military strikes on Iran over the weekend that resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and the effective closure of the Strait of Hormuz. Tehran retaliated by targeting US assets across the region, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria. The geopolitical flare-up adds to an already fragile backdrop for equities, with Wall Street coming off another selloff on Friday as investors questioned whether rapid AI adoption could sideline traditional software providers. On Friday, the Dow fell 1.05%, the S&P 500 shed 0.43% and the Nasdaq Composite lost 0.92%. Hotter-than-expected US inflation data also indicated that companies are passing tariff costs on to consumers, further complicating the outlook for Federal Reserve rate cuts.

Heading toward resistance level 1,900. The VN-INDEX closed at 1,880.33 (+0.69 points, 0.04%) with liquidity improving to align with the 20-session average. The market breadth leaned negative with 132 gainers and 202 losers. The stocks exerting the most downward pressure on the index were MCH, VNM, and HPG, while VIC, BSR, and GAS provided the primary upward lift. Foreign investors registered a net buy of 182 billion VND, which included a 220 billion VND return to FPT.

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.