Vietnam Insight

Expected release of the PCE index later today. US stock futures edged higher on Friday after heavy losses in the prior session, as investors prepared for another key inflation reading. January’s PCE price index, the Federal Reserve’s preferred inflation gauge, is set for release later today, though it will not capture the impact of the Iran war. Other notable releases include the first revision of Q4 US GDP growth and March consumer confidence. In Thursday’s regular trading, the Dow fell 1.56%, the S&P 500 dropped 1.52%, and the Nasdaq Composite declined 1.78%, with all three closing at their lowest levels since November. Eight of the 11 S&P sectors ended lower, led by industrials, consumer discretionary, and health. The declines came as oil prices surged after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed. Tehran increased attacks on shipping assets while US and Israeli strikes on Iran continued.

Recovery. VN-INDEX closed at 1,709.61 (-18.73 points, -1.08%) with liquidity remaining flat compared to the 20-day average. The market saw 138 gainers and 205 losers. Major laggards dragging down the index were VIC, TCB, and GAS, while BSR, VPL, and NVL provided the primary upward support. Foreign investors were net sellers to the tune of 210 billion VND, focusing their selling pressure on FPT and VHM.

Trading Strategy: Short-term investors may consider initiating new positions as the market shows signs of stable sideways movement. For medium-term positions accumulated at lower price levels, investors may continue to hold with confidence in sectors such as steel and banking, while maintaining a moderate allocation. Investors may also look into commodity-related stocks, as commodity prices are entering an upward trend.

Buy Recommendation: DDV