Vietnam Insight

Risks continue to rise. US equity futures declined around 0.5% on Sunday evening as war in Iran entered a fifth week and investors began a holiday-shortened trading week. Investors doubts about a resolution to the Iran war deepened after Iran-backed Houthi militants in Yemen joined the conflict and additional US troops were deployed to the region. The three major averages fell sharply on Friday, with the Dow dropping 793 points, the S&P 500 hitting a seven-month low and posting its fifth straight weekly loss, and the Nasdaq declining over 2%.

Short-term correction. VN-Index ended the trading day at 1,644.63 (-13.56 points, -0.82%), trading volume lower than average 20 latest sessions. There were 123 stocks ended in green, 207 ended in red. Stocks that had exerted the most significant downward pressure on the index were VHM, GAS and FPT; whereas VIC, GEE and DCM contributed positively to the index. Foreign net sold VND 746 bn, notably FUEVFVND and FPT, while foreign bought strongly MWG and DCM.

Trading Strategy: Investors may consider accumulating positions gradually during market pullbacks. However, given the ongoing uncertainty surrounding geopolitical developments, we recommend maintaining a moderate equity exposure to manage risk. In the current environment, sectors driven by domestic factors—such as public investment, banking, and construction materials—may be prioritized. At the same time, market declines triggered by cross-margin calls could present opportunities to accumulate stocks at attractive valuations.