Vietnam Insight

Investor sentiment improved. US stock futures held steady on Wednesday after a strong session left the S&P 500 and Nasdaq Composite within a striking distance of recovered levels, effectively wiping out losses from the Iran war. In Tuesday’s regular trading, the S&P 500 and Nasdaq Composite advanced 1.18% and 1.96%, respectively, while the Dow rose 0.66%. Investor sentiment was buoyed by growing optimism that the US and Iran could soon resume negotiations, fueling hopes for a deal to end the conflict and reopen the Strait of Hormuz. Washington and Tehran are reportedly aiming to hold a second round of talks before the current two-week ceasefire expires, following last weekend’s breakdown in discussions. Looking ahead, investors will focus on earnings from major banks such as Bank of America, Morgan Stanley, and PNC Financial, along with results from Dutch chipmaker ASML.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,775.65 points (+16.69 points, +0.95%), with trading volume easing slightly to around the 20-session average. There were 173 gainers and 135 decliners.Stocks contributing positively to the index included VIC, VHM, and HPG, while BSR, GAS, and STB weighed on the market.Foreign investors recorded a net buy of VND 153 billion, mainly concentrated in VIC and HPG, while FPT saw net selling.

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, PDR