Vietnam Insight

Oil prices fell after efforts by the US and Israel to ease market concerns about the conflict with Iran. US stock futures steadied on Friday as oil prices eased, following efforts by the US and Israel to calm market fears over the Iran conflict. US President Donald Trump said the US is not considering sending ground troops to the Middle East, while Treasury Secretary Scott Bessent suggested Iran’s regime could face internal collapse. Israeli Prime Minister Benjamin Netanyahu added that Israel would hold off on further strikes against Iranian energy infrastructure and that the war could end sooner than expected, noting Iran’s reduced capacity to enrich uranium or produce ballistic missiles. In Thursday’s regular session, the Dow dropped 0.44%, the S&P 500 slipped 0.27%, and the Nasdaq Composite declined 0.28%. 

Short-term correction. VN-Index ended the trading day at 1,699.13 (-14.70 points, -0.86%), lower liqudidity than the average 20 latest sessions. There were 95 stocks ended in green, 229 ended in red. Stocks that had exerted the most significant downward pressure on the index were STB, TCX and VPX; whereas GAS, BID and CTG contributed positively to the index. Foreign net sold VND 982 bn, notably FPT and VIC, while foreign bought strongly MSN. All sectors declined.

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: HDG