Vietnam Insight

The prospects for diplomatic talks remain limited. US stock futures were little changed on Wednesday as investors awaited a key inflation report that could provide insight into recent price trends, though it is not yet expected to capture the impact of the Iran war. In regular trading on Tuesday, the Dow and S&P 500 fell 0.07% and 0.21%, respectively, while the Nasdaq Composite edged up 0.01%. Nine of the 11 S&P sectors closed lower, with energy stocks leading the declines as oil prices retreated sharply. The major indexes initially rallied on hopes for a swift resolution to the Middle East conflict before reversing course after the White House clarified that no naval escorts had yet occurred in the Strait of Hormuz. US officials also signaled that military operations were escalating and that the prospects for diplomatic talks remained limited.

Short term downtrend. The VN-Index closed at 1,676.73 (+23.94 points, 1.45%) with liquidity remaining high compared to the 20-day average. The market saw 258 gainers and 88 losers. Stocks exerting the most downward pressure on the index were VIC, GAS, and BSR, while VCB, CTG, and MBB were the primary drivers of the index's gains. Foreign investors were net buyers to the tune of 1,132 billion VND, with concentrated in HPG and MWG. Many stocks rebounded strongly after the previous session

Trading Strategy: Short-term investors should prioritize staying on the sidelines as geopolitical risks are highly unpredictable. For medium-term positions accumulated at low prices, investors may continue holding sectors such as steel and banking, but maintain a moderate portfolio allocation.