Vietnam Insight

Threatening to derail the ceasefire agreement. US stock futures were little changed on Tuesday after the major averages declined in the prior session, pressured by renewed violence in the Middle East that threatened to derail the four-week ceasefire between the US and Iran. US forces repelled Iranian attacks while escorting two US-flagged vessels through the Strait of Hormuz, while the UAE reported intercepting cruise missiles launched by Iran and attributed a major fire at its Fujairah port to a drone strike. In Monday’s regular trading, the Dow dropped 1.13%, the S&P 500 fell 0.41%, and the Nasdaq Composite slipped 0.19%. Ten of the 11 S&P sectors closed in negative territory, with materials, industrials, and consumer staples leading the declines. Investors now shift focus to a slate of corporate earnings due Tuesday, including results from AMD, Arista Networks, Pfizer, Duke Energy, and PayPal. On the macro front, traders will monitor the latest US services activity data along with the JOLTs Job Openings report.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,854.06 points (-0.04 points, -0.00%), with trading volume below the 20-session average. There were 169 gainers and 148 decliners. Stocks contributing positively to the index included GVR, BSR, and VCB, while VIC, VHM, and NVL weighed on the market. Foreign investors recorded a net sell of VND 1,030 billion, mainly concentrated in ACB and FPT. Foreign investors unexpectedly turned net buyers of POW thanks to Q1 earnings results exceeding estimates.

Trading Strategy: Investors should hold their positions and take short-term profits when the market shows signs of slowing near the 1,860 resistance level. For medium-term positions, priority should be given to low-priced stocks with strong Q1 earnings growth, such as banks with high credit growth room and multiple positive catalysts, undervalued real estate stocks, steel, etc.