Vietnam Insight

Asian equities were positive. S&P 500 and Nasdaq 100 futures fell on Tuesday as investors braced for President Donald Trump’s looming deadline for Iran to reopen the Strait of Hormuz. Trump warned he could strike Iranian power plants and bridges unless his demands are met by 8 p.m. Eastern Time, though he noted that ongoing talks with Tehran are progressing well. Meanwhile, Iran cautioned that it would retaliate against potential US strikes on civilian infrastructure by escalating attacks on energy assets in the Gulf, potentially worsening the global energy shortage. In regular trading on Monday, the Dow Jones Industrial Average rose 0.36%, the S&P 500 gained 0.44%, and the Nasdaq Composite climbed 0.54%. Eight of the 11 S&P sectors ended higher, led by consumer discretionary, energy, and consumer staples. Investors now turn to durable goods orders data due Tuesday, along with key inflation figures on Friday. Earnings from Delta Air Lines are also in focus this week, with results expected Wednesday.

Accumulation. VN-Index ended the trading day at 1,674.99 (-9.05 points, -0.54%), trading volume lower than average 20 latest sessions. There were 76 stocks ended in green, 238 ended in red. Stocks that had exerted the most significant downward pressure on the index were VHM, BSR and TCB; whereas LPB, VIC and VCB contributed positively to the index. Foreign net sold VND 114 bn, notably TCB, MBB and HDB 

Trading Strategy: Investors may consider gradual accumulation during market pullbacks. However, given that geopolitical risks remain uncertain, we recommend maintaining a moderate equity exposure to effectively manage portfolio risk. At this stage, capital flows are showing a preference for sectors supported by domestic drivers, such as public investment, banking, and construction materials. For the real estate sector, following a period of deep correction, recent sessions have indicated a return of capital inflows. Meanwhile, the securities sector continues to be supported by the market upgrade narrative, sustaining its relative attractiveness to investors.