Vietnam Insight

International developments remained relatively positive. US stock futures advanced on Wednesday as optimism grew that a deal with Tehran could be within reach, after Washington declared an end to offensive operations against Iran, reaffirmed the ceasefire, and temporarily halted efforts to assist stranded vessels in exiting the Strait of Hormuz. Futures tied to the S&P 500 and Nasdaq 100 climbed 0.4% and 0.8%, respectively, while Dow futures edged up 0.2%. In extended trading, Advanced Micro Devices surged more than 16% after posting stronger-than-expected first-quarter earnings and revenue, along with an upbeat outlook for the current quarter. Super Micro Computer also jumped 18% following robust profit guidance, whereas Arista Networks slid nearly 12% after falling short of margin expectations. Investors now turn to another batch of earnings due Wednesday, including reports from AppLovin, Walt Disney, Uber, CVS Health, and DoorDash. Market participants will also monitor the release of ADP’s private payrolls report for April.

Testing the upper bound of the sideways range. The VN-Index closed the trading session at 1,874.85 points (+20.79 points, +1.12%), with trading volume below the 20-session average. There were 97 gainers and 213 decliners. Stocks contributing positively to the index included VIC, VHM, and VPB, while VCB, GVR, and NVL weighed on the index. Foreign investors recorded a net sell of VND 997 billion, mainly concentrated in ACB and HPG.

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.