Vietnam Insight

Consider further negotiations. US stock futures held steady on Tuesday after the major averages posted strong gains in the previous session, with the S&P 500 erasing losses since the Iran war began. Market sentiment was buoyed by optimism over a potential longer-term agreement between the US and Iran, despite the collapse of peace talks over the weekend. Trump said Tehran had reached out to Washington just hours after the US initiated a naval blockade of Iranian oil shipments in the Strait of Hormuz. During Monday’s regular session, the Dow rose 0.63%, while the S&P 500 and Nasdaq Composite advanced 1.02% and 1.23%, respectively. Nine of the 11 S&P sectors closed higher, led by gains in financials, technology, and consumer discretionary stocks. Investors are now focused on upcoming earnings reports from major banks, including JPMorgan Chase and Wells Fargo. Meanwhile, Goldman Sachs dropped nearly 2% on Monday after missing revenue estimates in its fixed-income, currencies, and commodities trading division.

Testing the upper bound of the sideways range. The VN-Index closed the trading session at 1,758.96 points (+8.96 points, +0.51%), with trading volume slightly declining to around the 20-session average. There were 137 advancing stocks and 171 decliners. Stocks that contributed positively to the index included VIC, VHM, and BSR, while VCB, GVR, and LPB exerted negative pressure. Foreign investors recorded a slight net sell of VND 96 billion, mainly concentrated in FPT and VCB.

Trading Strategy: Investors should avoid chasing stocks and instead select those showing improvement in business performance. 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.

Recommendation to wait for buying: HDG