Vietnam Insight

Geopolitical risks cloud markets. US stock futures were largely unchanged on Wednesday after Wall Street experienced extreme volatility in the previous session, as investors monitored developments in the Middle East. In regular trading on Tuesday, the S&P 500 fell as much as 2.49% before closing 0.94% lower, while the Dow and Nasdaq Composite slipped 0.83% and 1.02%, respectively. All 11 S&P sectors ended in the red, with materials, industrials, and health care among the worst performers. Market participants weighed concerns that rising energy prices, fueled by the US and Israel’s escalating conflict with Iran, could slow economic growth and stoke inflation. Losses were partially trimmed after President Donald Trump vowed to escort oil tankers through the Strait of Hormuz, easing supply concerns. On the corporate front, investors awaited earnings from Broadcom, Okta, and Abercrombie & Fitch for further guidance.

Retesting the support at 1,820 points. The VNINDEX closed at 1,813.14 (-32.96 points, -1.79%) with liquidity remaining high, up more than 40% compared to the average of the last 20 sessions. The market saw 120 gainers and 214 losers. The stocks that significantly impacted the index's correction were VIC, VHM, and BID; the stocks that helped the index rise were GAS, MCH, and GVR. Foreign investors net sold 782 billion VND, with net selling concentrated in HPG, VHM, and VNM.

Trading Strategy: Medium- to long-term investors may consider accumulating stocks that have not yet risen significantly and are forming tight consolidation bases. However, as the index has already rallied strongly and is approaching higher resistance levels, it is preferable to hold existing positions and be ready to take short-term profits rather than initiate new buys, particularly for stocks that move in line with the broader market. For short-term investors, it may be prudent to stay on the sidelines and observe, given that geopolitical risks remain relatively difficult to predict.