Vietnam Insight

Trump delayed his threat to strike Iranian civilian infrastructure for two weeks. US stock futures rallied on Wednesday after President Donald Trump delayed his threat to strike Iranian civilian infrastructure by two weeks, announcing what he called a “double-sided ceasefire”. Dow, S&P 500 and Nasdaq 100 futures were all up by more than 2%. Trump also said the US had received a 10-point proposal from Iran that he described as a “workable basis for negotiations,” with the two-week window allowing the potential agreement to be finalized and implemented. Additionally, Iran has agreed to reopen the Strait of Hormuz for two weeks provided all attacks are halted, adding that transit would need to be coordinated with Iran’s Armed Forces, while Israel has also reportedly agreed to the ceasefire. In regular trading on Tuesday, the Dow fell 0.18%, while the S&P 500 and Nasdaq Composite gained 0.08% and 0.1%, respectively.

Recovery expectation from the support level. The VN-Index closed the session at 1,677.54 points (+2.55 points, +0.15%), with trading volume below the 20-session average. There were 161 gainers and 140 decliners. The stocks exerting the most downward pressure on the index were VHM, GEE, and GAS, while VIC, LPB, and VPB contributed positively. Foreign investors recorded a net sell of VND 826 billion, notably in TCB, HDB, and MBB.

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.

The market this morning with two important developments: FTSE Russell announced its mid-term review results, officially confirming the roadmap for a market upgrade, and Donald Trump declared a two-week ceasefire with Iran. With these two positive news, the VN-Index is likely to see a strong breakout session.

Buy Recommendation: IDC