Vietnam Insight

Awaiting the US April jobs report. US stock futures were little changed on Monday as investors evaluated President Donald Trump’s plan to guide ships through the Strait of Hormuz alongside signs of progress in US–Iran peace negotiations. The initiative is intended to assist civilian vessels flagged in non-aligned countries in exiting the contested waterway so they can resume operations. Meanwhile, Iran said it is reviewing Washington’s response to its latest 14-point proposal, fueling hopes for a diplomatic resolution to the conflict. Looking ahead, markets are preparing for key economic releases this week, highlighted by the April US jobs report on Friday, which is expected to show moderating employment growth. On the corporate side, earnings are due from major companies this week including Palantir, AMD, Loews, Pfizer and McDonalds.

Testing the upper bound of the sideways range. The VN-Index closed the trading session at 1,854.1 points (-21.74 points, -1.61%), with trading volume below the 20-day average. Market breadth showed 161 advancers and 136 decliners.Stocks contributing positively to the index included LPB, GAS, and VRE, while VIC, VHM, and TCB were the main negative contributors. Foreign investors recorded net selling of VND 1,328 billion, primarily concentrated in VIC and PC1.

Trading Strategy: Investors may consider increasing equity exposure compared to last week, prioritizing stocks that are still at relatively low levels and have strong Q1 earnings growth prospects. Focus areas include banks with high credit growth room and positive narratives, undervalued real estate, and steel.