Vietnam Insight

Maintain a positive sentiment. US stock futures edged higher on Thursday following a record-setting session for the S&P 500 and Nasdaq Composite, as optimism over renewed US-Iran negotiations and the prospect of a broader peace deal lifted sentiment. In Wednesday’s regular trading, the S&P 500 advanced 0.8% while the Nasdaq Composite jumped 1.59%, with the latter marking its strongest 11-day run on record amid a tech-driven rally. In contrast, the Dow slipped 0.15%. Gains were led by the technology, consumer discretionary, and communication services sectors, while materials, industrials, and utilities underperformed. Looking ahead, investors are eyeing a new wave of corporate earnings on Thursday, including reports from Netflix, PepsiCo, and Charles Schwab. On the data front, markets will monitor weekly jobless claims along with updates on March capacity utilization and industrial production.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,800.65 points (+25 points, +1.41%), with trading volume slightly declining to around the 20-session average. There were 105 gainers and 194 decliners. Stocks that contributed positively to the index included VIC, VHM, and VPL, while MWG, GAS, and HPG weighed on the index. Foreign investors recorded a net sell value of VND 3,694 billion, mainly concentrated in VHM at approximately VND 3,563 billion.

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.