Vietnam Insight

US inflation accelerated to 3.8% in April — the highest level since May 2023. US stock futures moved lower on Wednesday as investors awaited the latest producer inflation data for additional clues on the economic impact of the ongoing Middle East conflict. During Tuesday’s regular session, the S&P 500 and Nasdaq Composite declined 0.16% and 0.71%, respectively, while the Dow Jones added 0.11%. Sentiment was pressured by weakness in technology shares and rising oil prices as President Donald Trump cast doubt on the sustainability of the US-Iran ceasefire after rejecting Tehran’s counterproposal to end the war. Economic data released Tuesday also showed US consumer inflation accelerated to 3.8% in April, above expectations of 3.7% and the highest level since May 2023. Investors are now turning their attention to another round of corporate earnings due Wednesday, including results from Nebius, Allianz, and Alibaba, among others.

Uptrend. The VN-Index closed the trading session at 1,895.50 points (-19.87 points, -1.04%), with trading volume exceeding the average of the previous 20 sessions. There were 104 gainers and 213 decliners. Stocks that contributed positively to the index included BSR, GEE, and LPB, while VIC, VHM, and BID weighed negatively on the market. Foreign investors recorded a net sell value of VND 1,019 billion, mainly concentrated in VHM, FPT, and DGC.

Trading Strategy: Investors should avoid aggressively chasing overheated stocks amid still-limited market breadth. For medium-term positioning, the focus should remain on low-base stocks with strong Q1 earnings growth, including banks with high credit growth quotas and multiple positive catalysts, undervalued real estate stocks, steel, retail, and related sectors.

Buy recommendation: VGC; Sell recommendation: MBB

Current trading portfolio: MBB, PDR, VPB

Watchlist: HPG, NLG, KDH, HDB