Vietnam Insight

Uncertainty has returned despite earlier optimism. US stock futures edged higher on Tuesday as investors focused on a second round of peace talks between the US and Iran ahead of the expiration of their current ceasefire. Tehran is reportedly preparing to send a delegation to Islamabad, reversing earlier signals that it would not engage in further negotiations, while President Donald Trump said he is unlikely to extend the truce if no agreement is reached, adding that the Strait of Hormuz will remain blocked until a deal is secured. In regular trading on Monday, the S&P 500 and Nasdaq Composite declined 0.24% and 0.26%, respectively, retreating from record highs as tensions between the US and Iran escalated again over the weekend. In corporate developments, Apple fell about 0.6% in extended trading after naming John Ternus as its next CEO. Investors are now turning to a busy earnings calendar on Tuesday, with results expected from Danaher, GE Aerospace, Northrop Grumman, UnitedHealth, and RTX, among others.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,837.11 points (+19.94 points, +1.1%), with trading volume below the 20-session average. There were 154 gainers and 147 decliners. Stocks that contributed positively to the index included VHM, VIC, and VCB, while BSR, GAS, and GVR weighed on the index. Foreign investors recorded a net sell of VND 605 billion, mainly concentrated in VIC (VND 867 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.

Buy Recommendation: HDG