Vietnam Insight

U.S. stocks declined amid ongoing developments in the Middle East and mixed corporate earnings results. US equities closed lower on Thursday, halting the recent rally, amid the latest developments in the Middle East and as investors parsed mixed corporate earnings. The Nasdaq 100 fell 0.9%, while the S&P 500 and the Dow each decreased 0.3%. WTI crude futures surged past $106 per barrel, amid ongoing blockades in the Strait of Hormuz and following media reports that air defense systems were activated in parts of Tehran. Tech stocks were the main drag after yesterday's outperformance amid mixed results on speculative AI companies. Tesla fell 3.5% amid skepticism on its announcement of higher AI and robotics spending.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,870.36 points (+13.06 points, +0.7%), with trading volume rebounding to above the 20-session average. There were 104 gainers and 208 decliners.Stocks that contributed positively to the index included VIC, VCB, and BID, while VHM, BSR, and HPG weighed on the market. Foreign investors recorded a net sell of VND 1,652 billion, mainly concentrated in FPT, VHM, and ACB.

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.