Vietnam Insight

Correction phase while awaiting the April jobs report. US stock futures edged lower on Friday after the major averages declined in the previous session, as renewed exchanges between the US and Iran in the Strait of Hormuz kept geopolitical tensions elevated. Three US Navy destroyers passing through the strategic waterway reportedly intercepted Iranian attacks and carried out retaliatory strikes, though President Trump stated that the ceasefire remains in place. Investors are also turning their attention to the April jobs report, which is expected to show the US economy added 62K jobs last month, sharply below the 178K increase recorded in March. On the corporate side, earnings results are due from companies including Ubiquiti Networks, Wendy’s, and Brookfield Asset Management. In regular trading on Thursday, the Dow fell 0.63%, while the S&P 500 and Nasdaq Composite declined 0.38% and 0.13%, respectively. Nine of the 11 S&P sectors closed in negative territory, with materials, energy, and industrials posting the steepest losses.

Uptrend. The VN-Index closed the trading session at 1,909.01 points (+17.81 points, +0.94%), with trading volume exceeding the average of the previous 20 sessions. There were 119 gainers and 191 decliners. The main positive contributors to the index were VHM, VIC, and STB, while VCB, BSR, and GAS weighed negatively on the market. Foreign investors recorded a net sell value of VND 310 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.