Vietnam Insight

Awaiting the Fed’s policy decision. US stock futures were little changed on Wednesday as investors braced for the latest Federal Reserve policy decision. The central bank is widely expected to leave interest rates unchanged, while traders look for guidance from Fed Chair Jerome Powell on how surging oil prices could influence the policy outlook. Oil prices continued to rise amid persistent Middle East hostilities, while US allies pushed back against President Donald Trump’s call to help secure shipping through the Strait of Hormuz. In regular trading on Tuesday, the Dow added 0.1%, the S&P 500 gained 0.25%, and the Nasdaq Composite advanced 0.47%. 

Waiting for bottom-fishing demand. VN-Index ended the trading day at 1,710.29 (+17.08 points,+1.01%), lower liqudidity than the average 20 latest sessions. There were 179 stocks ended in green, 147 ended in red. Stocks that had exerted the most significant downward pressure on the index were BSR, GAS and DGC; whereas VCB, MCH and VIC contributed positively to the index. Foreign net sold VND 681 bn, notably VIC (net sold over VND 1,008 bn), while foreign bought strongly VCK, MCH and MSN. Insurance stocks stand out.

Trading Strategy: Investors should avoid fully deploying their buying power until there is greater clarity regarding geopolitical developments in Iran. In the meantime, investors may focus on domestically driven sectors such as public investment, banking, and construction materials. Market corrections caused by indirect cross-margin calls could also create opportunities to accumulate stocks at more attractive valuations. Additionally, investors may consider commodity-related stocks as commodity prices appear to be entering an upward trend (e.g., fertilizers). However, these stocks tend to be highly volatile, so proper risk management is necessary if market conditions change

Buy Recommendation: HPG