Vietnam Insight

Crude oil prices climb back to $90 – Inflation concerns resurface. US stock futures fell sharply on Thursday as oil prices resumed their advance, fueling concerns about resurgent inflation. WTI crude climbed back above $90 a barrel as the prospect of a prolonged Iran war overshadowed a coordinated release of oil reserves by major economies. Markets also viewed the emergency oil release as insufficient even after the IEA agreed to its largest-ever release of 400 million barrels of crude. That includes 172 million barrels from the US, which will take about 120 days to deliver. In regular trading on Wednesday, the Dow and S&P 500 lost 0.61% and 0.08%, respectively, while the Nasdaq Composite edged up 0.08%. Eight of the 11 sectors finished lower, with energy, technology, and communication services the only sectors closing in positive territory. Clean energy funds also emerged as a bright spot, reaching record highs as investors sought alternatives to volatile fossil fuel supplies amid the ongoing regional conflict. 

Recovery. The VN-INDEX closed at 1,728.34 (+51.61 points, or 3.08%), with liquidity remaining flat compared to the 20-day moving average. The market saw 291 gainers and 57 losers. The stocks primarily driving the index's correction were BID, DCM, and APG, while VIC, VHM, and GAS supported the upward trend. Foreign investors recorded a net buy of 1,085 billion VND, focusing on ACB, HPG, and MWG. The market continued to recover for a second consecutive session following the record sharp decline earlier this week.

Trading Strategy: Short-term investors should prioritize staing 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.

Buy Recommendation: VCI