Vietnam Insight

President Donald Trump extends the current ceasefire with Iran. US stock futures advanced on Wednesday after President Donald Trump extended the current ceasefire with Iran, easing concerns about further escalation in the Middle East. Dow and S&P 500 futures each climbed about 0.4%, while Nasdaq 100 futures rose 0.5%. Still, the US blockade on Iranian vessels remains in effect as plans for a second round of US-Iran peace talks collapsed. Reports indicated that Vice President JD Vance canceled a planned trip to Islamabad for negotiations after Tehran informed the US via Pakistan that it would not participate in the meeting. In regular trading on Tuesday, the Dow and Nasdaq Composite both declined 0.59%, while the S&P 500 fell 0.63%. Ten of the 11 S&P sectors closed lower, with real estate, utilities, and industrials leading the losses. Investors now shift focus to another wave of earnings reports, with Tesla, AT&T, Boeing, GE Vernova, and CME Group all scheduled to release updates on Wednesday.

Testing the upper bound of the sideways range. The VN-Index closed the trading session at 1,833.48 points (-3.63 points, -0.2%), with trading volume remaining in line with the 20-session average. There were 99 gainers and 227 decliners.Stocks contributing positively to the index included VIC, STB, and LPB, while VCB, VPB, and FPT exerted downward pressure.Foreign investors recorded a net sell value of VND 377 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.

Buy Recommendation: HDG