Vietnam Insight

Global equities traded positively. US stock futures jumped on Tuesday as Wall Street reopened following a holiday-extended weekend, with investor sentiment boosted by hopes for a potential peace agreement between the US and Iran. President Donald Trump said negotiations were progressing well, though he warned that fresh attacks could follow if talks broke down, while a Pakistani mediator reportedly told China that a deal was close. Nevertheless, key issues remain unresolved, including Iran’s nuclear ambitions and its demand to maintain control over maritime traffic through the Strait of Hormuz. Last week, the Dow rose 2.13%, while the S&P 500 gained 0.88% and the Nasdaq Composite advanced 0.45%, supported by optimism over Middle East peace efforts and another strong batch of corporate earnings. Investors are now focusing on a busy week of US economic releases, including PCE inflation and GDP data, alongside earnings reports from Zscaler, Salesforce, and Dell Technologies, among others.

Accumulating ahead of a breakout. The VN-Index closed the trading session at 1,886.03 points (+8.90 points, +0.47%), with trading volume falling below the level of the last 20 sessions. 129 stocks rose, while 174 declined. Stocks positively impacting the index included VHM, VIC, and VPL; while BSR, GAS, and GVR negatively affected the index. Foreign investors net sold VND 2,008 billion, mainly focusing on MSB (VND 1,579); while net buying MSN and HDB.

Trading Strategy: Investors may focus on stocks with sideways consolidation patterns and strong earnings growth rather than concentrating solely on VN-Index fluctuations for medium-term positioning. In the short term, opportunities may emerge in heavily sold off stocks showing signs of recovery, such as insurance, technology, and real estate sectors.

Buy recommendation: BVH

Current trading portfolio: VGC, PC1

Watchlist: HPG,  KDH, HDB, CTD