Vietnam Insight

Global markets turned positive amid clearer signals. US stock futures held steady on Thursday after the S&P 500 and Nasdaq Composite closed at fresh record highs in the previous session, buoyed by hopes that the US and Iran were moving closer to an agreement to end the war. Reports suggested the two sides were nearing a one-page, 14-point memorandum of understanding to end the war and potentially reopen the Strait of Hormuz, while establishing a framework for more detailed nuclear talks. In regular trading on Wednesday, the S&P 500 and Nasdaq Composite jumped 1.46% and 2.02%, respectively, while the Dow gained 1.24%. Nine of the 11 major S&P sectors finished in positive territory, led by gains in industrials, technology, and communication services. Strong corporate earnings continued to underpin market sentiment, particularly among AI-related companies that remained at the forefront of the rally. Investors are now awaiting more earnings reports on Thursday, including results from McDonald’s, Gilead Sciences, and Airbnb, among others.

Testing the upper bound of the sideways range. The VN-Index closed the session at 1,891.2 points (+16.35 points, +0.87%), with trading volume in line with the 20-session average. There were 202 gainers and 110 decliners. Stocks contributing positively to the index included VCB, GEE, and STB, while MCH, FPT, and NVL weighed on the market. Foreign investors recorded a net sell of VND 1,106 billion, mainly concentrated in ACB and FPT.

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.